Apple in talks to buy Renesas stake in chip design unit - Nikkei

Tue Apr 1, 2014 11:39pm IST

Renesas Electronics Corp's chips are pictured at the company's office in Tokyo October 23, 2012. REUTERS/Yuriko Nakao/Files

Renesas Electronics Corp's chips are pictured at the company's office in Tokyo October 23, 2012.

Credit: Reuters/Yuriko Nakao/Files

Related Topics

Stocks

   

REUTERS - Apple Inc (AAPL.O) is in talks to buy Japan-based Renesas Electronics Corp's stake in a unit that designs liquid crystal display chips for iPhones for about 50 billion yen, the Nikkei reported, without identifying a source.

Renesas owns 55 percent stake in Renesas SP Drivers, its joint venture with Sharp Corp and Taiwan's Powerchip.

Apple expects to complete the stake purchase by summer, the business daily reported on Tuesday.

The U.S. company "apparently wants to meld" the design of core display components into its overall product development as image quality becomes a crucial selling point for smartphones, the Nikkei said.

Sharp, which owns 25 percent in Renesas SP, is expected to sell its stake to Apple if the U.S. company asks, the newspaper said.

Renesas has been hit by slowing orders and competition from companies such as Samsung Electronics Co Ltd.

The Japanese company received a 150 billion yen bailout from a government-led fund and its major customers in September to counter an earlier bid by U.S. private equity firm KKR & Co LP (KKR.N).

(Reporting by Sruthi Ramakrishnan in Bangalore; Editing by Kirti Pandey)

FILED UNDER:

Reuters Showcase

Documentary Banned

Documentary Banned

Documentary on 2012 Delhi gang rape banned in India.  Full Article 

RBI Rate Cut

RBI Rate Cut

RBI surprises with post-budget rate cut.  Full Article 

Beef Ban

Beef Ban

After beef ban, Hindu groups force abattoirs to close   Full Article 

Insurance Reforms

Insurance Reforms

Opposition support bolsters prospects for insurance reforms.  Full Article 

Axed by Censors

Axed by Censors

India's censor blocks 'Fifty Shades of Grey' from cinemas.  Full Article 

Bollywood Focus

Bollywood Focus

Franchise Man swoops in to save Bollywood.  Full Article 

Reuters Exclusive

Reuters Exclusive

India expects better monsoon rains this year.  Full Article 

Reuters Interview

Reuters Interview

Budget lacks wow, but good enough: Jim O’Neill.  Full Article 

Slim Chances

Slim Chances

Dozens of miners missing, feared dead after blast in east Ukraine.  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage