Renesas considering buying chipmaker IDT for $6 billion

Tinuku - Renesas Electronics Corp is considering buying U.S. chipmaker Integrated Device Technology Inc (IDT) as it pursues further growth, the Japanese automotive chipmaker said on Friday.

The potential acquisition comes as Renesas is beefing up its business in chips for self-driving cars. The source said the deal would be worth as much as US$6 billion, becoming one of the largest acquisitions for a Japanese chipmaker.

Tinuku Renesas considering buying chipmaker IDT for $6 billion

Renesas, second only to NXP Semiconductors NV in automotive chips, in a filing said nothing has been decided, but that it would be prompt in disclosing any decision made. It also said it is seeking the best financing method in the event of an acquisition, should financing be necessary.

Renesas, which bought U.S. chipmaker Intersil Corp for US$3.2 billion last year, has been constantly reviewing its list of potential acquisition targets amid a wave of mega-mergers in the industry, its chief executive has said.

Buying IDT, which has strengths in chips for wireless network devices, could help Renesas enhance its capabilities in developing chips for data communications crucial for self-driving cars. According to the source, Renesas plans to buy all IDT shares to take full control of the Nasdaq-listed company.

Renesas was created in 2010 from a merger of NEC Corp’s chip division and Renesas Technology, which itself was established through a merger of the chip units of Hitachi Ltd and Mitsubishi Electric Corp.