Re­ne­sas buys US chip­maker In­ter­sil

The Myanmar Times - - International Business -

JA­PAN’S Re­ne­sas Elec­tron­ics will buy smaller US chip­maker In­ter­sil for US$3.2 bil­lion as part of a push into the lu­cra­tive auto mar­ket.

Re­ne­sas, one of the world’s big­gest sup­pli­ers of au­to­mo­tive mi­cro­con­troller chips, said it would pay $22.50 a share for its ri­val in an all-cash deal. The com­bined firms would have an­nual rev­enue of around $7.18 bil­lion.

Among its prod­ucts, In­ter­sil makes chips that man­age bat­tery volt­age in hy­brid and elec­tric ve­hi­cles and op­er­ate on-board cameras and dis­plays. The Cal­i­for­nia-based firm re­ported sales of about $520 mil­lion last year.

Re­ne­sas – cre­ated through a merger of the chip units of Hi­tachi, Mit­subishi Elec­tric and NEC – is find­ing its feet af­ter years of losses forced a ma­jor re­struc­tur­ing in­clud­ing job cuts and fac­tory clo­sures.

The com­pany – whose customers in­clude ma­jor au­tomak­ers Toy­ota and Ford – re­ported its sec­ond year of prof­its in the fis­cal year through March, af­ter pil­ing up red ink of some 400 bil­lion yen over the pre­vi­ous five years. –

Photo: AFP

Bun­sei Kure, pres­i­dent of Re­ne­sas Elec­tron­ics, an­nounces the deal in Tokyo yes­ter­day.

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