TOKYO, April 10 Japanese automotive chip maker
Renesas Electronics Corp is hungry for more
acquisitions amid a wave of megamergers in the industry and may
need to issue equity shares sometime in the future to build its
warchest, its CEO said on Monday.
"The fragmented (automotive chip) market will be eventually
consolidated into some dominant players" posing a long-term
threat to Renesas, currently the world's No. 3, Renesas chief
executive Bunsei Kure told reporters.
NXP Semiconductors NV, the industry leader, has
agreed to be acquired by Qualcomm Inc in a $47 billion
deal to retain its lead in the fast-growing automotive chips
And more recently, Intel Corp agreed to buy Israeli
autonomous vehicle technology firm Mobileye for $15.3
Kure said Renesas, which bought U.S. chipmaker Intersil Corp
for $3.2 billion this year, is constantly reviewing its list of
potential acquisition targets, comprising around several dozen
names in fields such as sensors and security.
To be ready for major acquisitions, Kure said the company
would probably need to raise capital by issuing shares "at some
point" in the future. "We want to be prepared to move when
necessary," he said.
According to data research firm IHS, Renesas had an
automotive chip market share of 9.0 percent in 2016, ranking
after NXP with 12.6 percent and Infineon Technologies
with 9.5 percent.
(Reporting by Makiko Yamazaki and Kentaro Hamada; Editing by