Apple in talks to acquire Renesas SP Driver display chip unit

by Mark Tyson on 2 April 2014, 13:47

Tags: Renesas Electronics, Apple (NASDAQ:AAPL)

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Apple is reportedly in talks with Japanese chipmaker Renesas Electronics in an acquisition for its smartphone display chip designing unit, according to Nikkei business news. It appears that Apple is seeking to take over Renesas SP Driver, a Renesas joint venture with Sharp and Taiwan's Powerchip which produces controllers for small and midsize LCD displays. The outfit has a considerable market share, of around a third of the global market.

These chips can determine a display's performance, quality and energy efficiency (contributing up to 10 per cent battery usage savings) and even though Apple uses various suppliers for its phone components, it gets all of its iPhone liquid crystal display chips from Renesas SP.

Renesas is said to be struggling, racking up nearly 650 billion yen ($6.28 billion) in net losses during eight years in the red, and is in the process of restructuring its business around the automotive industry, a person familiar with the matter told Reuters. Thus the company is considering selling its entire 55 per cent stake in this subdivision for an estimated 50 billion yen ($479 million).

However, Apple is not the only firm looking to buy the unit as Renesas has reportedly met up with a number of other companies to discuss selling the stake. Sharp Corp has said that it also expects to sell all of its its 25 per cent stake in Renesas SP Driver to Apple if the company requires them to do so after completing the majority deal with Renesas.

If the deal goes through, which Apple is aiming to complete by summer, most of the 240 employees of the unit are expected to remain employed at their Japan-based offices.



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I think Apple finally realized that Flexible/curved screen Tech from Samsung isn't going to happen without a massive cost (LG an option). I think Apple prefers a third option, and maybe willing to work on it to make it a viable option in the future.