Apple in talks to buy Renesas stake in chip design unit - Nikkei
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)
- Tweet this
- Share this
- Digg this
Jack Ma, executive chairman of Alibaba Group Holding Ltd , has become China's richest man with a fortune estimated at $25 billion, underscoring the ascension of tech tycoons over real estate peers in the world's second biggest economy. Full Article