Renesas buys US chipmaker Intersil
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. –
Bunsei Kure, president of Renesas Electronics, announces the deal in Tokyo yesterday.