By Jon Russell
Japan-based semiconductor firm Renesas — one of the world’s largest supplier of chips for the automotive industry — is scooping up U.S. chip company IDT in a $6.7 billion deal that increases its focus on self-driving technology.
Renesas produces microprocessor and circuits that power devices, and automotive is its core focus. It is second only to NXP on supply, and more than half of its revenue comes from automotive. IDT, meanwhile, includes power management and memory among its products, which focus on wireless networks and the converting and storing of data. Those are two areas that are increasingly important with the growth of connected devices and particularly vehicles which demand high levels of data streaming and interaction.
The acquisition of IDT — which is being made a 29.5 percent on its share price — is set to expand Renesas’ expertise on autonomous vehicles. The firm said it would also broaden its business into the “data economy” space, such as robotics, data centers and other types of connected devices.
Source: Tech Crunch