Japanese chip giant Renesas Electronics is to buy IDT of the US for $6.7bn, boosting its position in embedded, networking and telecoms markets.
“The combination of Integrated Device Technology’s analogue mixed-signal leadership with Renesas’ world-leading microcontroller and automotive/industrial franchise creates a new global powerhouse,” said Greg Waters, President and CEO of IDT. “The combined company will possess the key capabilities that customers in the modern data economy demand.”
The deal follows the acquisition of Intersil in February 2017, and Renesas is aiming at the automotive segment, which is expected to see tremendous growth with autonomous driving and EV/HEV; industrial and infrastructure segments, which are expected to advance with Industry 4.0 and 5G (fifth-generation) wireless communications, as well as the fast-growing IoT segment.
Since 2016, Renesas has been executing its growth strategy to thrive in the global marketplace and become a global leading embedded solution provider, says the company. As part of this initiative, Renesas is working to expand its analogue capabilities and strengthen its kit solution offerings that combine its microcontrollers (MCUs), system-on-chips (SoCs) and analogue products.
The acquisition will provide Renesas with access to a vast array of robust analogue mixed-signal capabilities in embedded systems, including RF, advanced timing, memory interface & power management, optical interconnect, wireless power, and smart sensors. The combination of these product lines with Renesas MCUs and SoCs and power management ICs enables Renesas to offer comprehensive solutions that support the increasing demand of high data processing performance.
IDT’s analogue mixed-signal products for data sensing, storage and interconnect are key devices that support the growth of data economy. Acquisition of these products enables Renesas to extend its reach to fast-growing data economy-related applications including data centre and communication infrastructure, and to strengthen its presence in the industrial and automotive segments.
"This acquisition will bring us complementary, market-leading analog mixed-signal assets and an incredibly talented group of professionals to help us boost our embedded solution capabilities," said Bunsei Kure, Representative Director, President and CEO of Renesas. “IDT’s products combined with our MCUs, SoCs and power management ICs will enable Renesas to widen its product offerings as well as to expand its reach into areas such as the growing data economy-related space.”