Apple mulls buying processor unit from Japan’s struggling Renesas

DPA Updated - April 02, 2014 at 10:39 AM.

Apple Inc is looking to purchase struggling Japanese firm Renesas Electronics Corp’s stake in a unit that designs chips for smartphone displays, the Nikkei business daily reported on Wednesday.

Apple is reportedly seeking to acquire the entire 55 per cent stake that Renesas owns in Renesas SP Drivers Inc, a joint venture with Sharp Corp and Taiwan’s Powerchip Technology Corp.

Apple aims to complete the transfer by summer, in a deal worth about ¥50 billion ($482 million), the Nikkei said, without citing any sources.

“Apple apparently wants to meld the design of core display components into overall product development” as image quality becomes a crucial selling point for smartphones, the daily said.

Renesas Electronic said in a statement on Wednesday’s media reports “were not based on Renesas’ announcement and they cannot be confirmed or regarded as fact at this time.” Last year, Renesas received a ¥150 billion bailout from a state-led fund and major client companies, including Toyota Motor Corp.

Published on April 2, 2014 05:09