Back in April, rumors indicated Apple was in talks with chipmaker Renesas Electronics over the potential acquisition of its Renesas SP Drivers division, which produces chips for smartphone displays including for the iPhone.

As it turns out, Renesas Electronics appears set to sell its stake in Renesas SP Drivers to Synaptics, another chip manufacturer, instead of Apple. According to Reuters, the talks between Apple and Renesas "failed to make progress", leading Renesas to move forward with Synaptics. Apple was originally offering 50 billion yen or $479 million for Renasas' 55 percent stake in the company, which is also partially owned by Sharp and Powerchip.

Apple Inc had also been in talks about a possible purchase of the stake in Renesas SP Driver in what was seen as a potential move to shore up its global supply chain, but the sources said those talks failed to make progress and Renesas had narrowed its consideration to Synaptics.

Apple currently uses chips from Renesas Electronics in its iPhone displays, improving both image sharpness and battery life. It is unclear how a failed acquisition would affect the ongoing relationship between the two companies.

apple_renesas_synaptics_logos
While Reuters suggests that the deal between Renesas and Synaptics is all but certain, Nikkei claims that Apple is still interested but that pricing was a major obstacle.

Apple still seems interested in acquiring the unit. Renesas "hopes to reach an agreement with Synaptics on the sale and will continue to try to persuade Apple to give in," a person familiar with Renesas' plans said.

Renesas was also reportedly convinced by some of its non-Apple customers that their access to the company's components could be cut off if Apple were to acquire the division, driving Renesas to give an edge to Synaptics.

Despite the possible failure to purchase Renesas SP Drivers, Apple's effort is part of a trend that has seen the company take a keen interest in controlling its own production supplies and core technologies in recent years. Apple recently signed a deal with sapphire producer GT Advanced Technologies and has also purchased several chip firms in the past, including P.A. Semi and Passif Semiconductor.

Top Rated Comments

IJ Reilly Avatar
122 months ago
Apple was originally offering 50 billion yen or $479 for Renasas' 55 percent stake in the company

We can see why that offer might have seemed a little low.
Score: 12 Votes (Like | Disagree)
WildCowboy Avatar
122 months ago
Thanks for spotting the error, folks. :)
Score: 2 Votes (Like | Disagree)
oftheheavens Avatar
122 months ago
I'll top their offer and bid $480!
Score: 2 Votes (Like | Disagree)
nostaws Avatar
122 months ago
Don't confuse valuation with revenue with profit.

Beats has never earned a PROFIT of $1.5 billion per year. It might sell $1.5 billion worth of headphones. But, with that $1.5 billion in revenue they have to pay to make the headphones they sell, advertise, run the company, etc.

Beats as a company is valued somewhere between $1 billion and $1.5 billion.

I'm sure this chipmaker is not bringing in 1.5 billion a year with high margins like beats. Chips is a low profit market and this was for only a 55% stake. I'm sure their purpose was to make sure a competitor didn't get them. I don't think they will mind if this company does.
Score: 1 Votes (Like | Disagree)
nostaws Avatar
122 months ago
Wow. I didn't know Japan had fallen on such hard times. I'd better take my American dollars and head over there.

Apple was originally offering 50 billion yen or $479 for Renasas'

On a more serious note: Apple can't pony up the dough for a chip maker but is allegedly ready to buy beats for billions?
Score: 1 Votes (Like | Disagree)
IJ Reilly Avatar
122 months ago
I'll top their offer and bid $480!

Throw in a couple of iPhones and you've got a deal.
Score: 1 Votes (Like | Disagree)

Popular Stories

iOS 17

Apple Releases iOS 17.0.2 and iPadOS 17.0.2 for All iPhones and iPads

Tuesday September 26, 2023 12:47 pm PDT by
Apple today released iOS 17.0.2 and iPadOS 17.0.2 updates, with the software coming five days after the releases of iOS 17.0.1 and iPadOS 17.0.1. Today's iOS 17.0.2 and iPadOS 17.0.2 updates arrive as build 21A351 and can be downloaded on eligible iPhones and iPads over-the-air by going to Settings > General > Software Update. Note that iOS 17.0.2 was previously made available for iPhone...
Apple WWDC23 macOS Sonoma hero

macOS Sonoma Launching This Week With These New Features

Sunday September 24, 2023 12:45 pm PDT by
Apple previously announced that macOS Sonoma will be released this Tuesday, September 26. The free software update includes many new features and changes for the Mac, including the five that we have highlighted below. In addition to these five features, we have shared the full release notes for macOS Sonoma below for a complete overview of everything new. Desktop Widgets macOS Sonoma...
iPhone 15 Pro Lineup Feature

Kuo: iPhone 15 Pro Overheating Issues Likely Due to Thermal Compromises, Not 3nm Node

Tuesday September 26, 2023 9:12 am PDT by
Complaints about heat issues with the iPhone 15 Pro models are not related to TSMC's 3-nanometer node that was used for the A17 Pro chip, according to well-respected Apple analyst Ming-Chi Kuo. Kuo says that overheating could be caused by "compromises made in the thermal system design" that allowed Apple to cut down on the weight of the iPhone 15 Pro models. Kuo says that the reduced heat...
iPhone 16 Side Feature

iPhone 16 to Include an Additional Capacitive 'Capture' Button

Monday September 25, 2023 12:50 pm PDT by
The iPhone 16 series is expected to gain an additional capacitive button, known internally as the "Capture Button." Codenamed "Project Nova," the button is likely to be one of the main selling points of the iPhone 16 lineup, assuming it gets past the initial testing phase. The Capture Button is located on the same side as the Power button, only positioned slightly lower - where the mmWave cutout...
ipad mini blue

Apple to Launch iPad Mini 7 Later This Year, Industry Report Suggests

Monday September 25, 2023 3:16 am PDT by
Apple could be preparing to release a seventh-generation iPad mini before the end of the year, based on a new report by DigiTimes. In an article discussing stagnating global tablet demand in the second half of 2023, the Taiwan-based outlet forecasts an uptick in Apple's share of the market owing to orders for a "small-size" iPad in the fourth quarter. From the report (see bold): In the...
macos sonoma 4

Apple Releases macOS Sonoma With New Widget Features, Safari Updates, Screen Sharing Improvements and More

Tuesday September 26, 2023 10:01 am PDT by
Apple today released macOS 14 Sonoma, the newest version of the operating system that runs on the Mac. macOS Sonoma has been in beta testing for several months, and it is compatible with the 2019 and later iMac, the iMac Pro, the 2018 and later Mac mini, the 2018 and later MacBook Pro, the 2019 and later Mac Pro, and the Mac Studio. The ‌macOS Sonoma update can be downloaded for free on...