News: Renesas looks to bolster its automotive chip business.
Japanese chipmaker Renesas Electronics is reportedly in talks to acquire Intersil, a US-based chip maker. According to sources cited by the Wall Street Journal, the deal is worth around $3 billion.
In what could prove an astute move from the Japanese chipmaker, the buyout looks to bolster the company’s semiconductor offerings for cars. Many rivals in the sector are rushing to profit off the increased interest in automotive devices, with Renesas hoping this deal could provide a much needed boost to its unprofitable operations.
“We are considering various options for growth including” a possible deal with the U.S. company, Renesas said in a statement.
First reported by Japanese business daily Nikkei, the deal points to Renesas trying to remain competitive in an industry which has seen considerable consolidation in recent times.
Intersil posted $522m in revenue and $7.2m in net income in 2015, with the US-based firm boasting a considerable number of customers in the automotive and aerospace industries.