According to foreign media reports, Renesas Electronics (Renesas Electronics Corp) said today that the company agreed to $3.2 billion deal to buy the chip maker, Internet silicon (Intersil Corp). This is a full cash acquisition, the acquisition of the Japanese company provide support to auto chip business efforts.
Computers and smartphones is the traditional pillar of the chip industry, and the computer and smartphone industry slowed down growth in the global has sparked a wave of mergers and acquisitions, chip makers in pursuit of sales growth and turns to car electronics business efforts.
Renesas electronics by the semiconductor sector integration of several Japanese companies, since five years ago after fukushima earthquake won a national bailout funds and key customers, so the company more competitive and full of money.
Renesas electronics CEO wu jing (Bunsei Kure) in Tokyo told the media and analysts said, "this quotation is competitive, the price we give is almost the highest." He also said, "we have the ability to integrate their products, and shall be packaged and" renesas electronics will "actively seek other mergers and acquisitions," to further grow their business.
Renesas electronics will be in accordance with the price of $22.5 a share Internet silicon, the price is 14% higher than that of Internet silicon's closing price on Monday. Renesas electronics holdings a Singapore investment company manager said, "may not be at a premium, if renesas electronics not to buy the Internet silicon, they will have to provide products to the consumers." The don't want to reveal your identity manager said, "if the renesas electronics hopes to become a first-class auto parts maker, they have to do that."
Market research firm Gartner, Tokyo's chief research analyst mountain road is the constant (Masatsune Yamaji) to skeptical about the benefits of the deal, he said, "renesas electronics in the future, whether can the Internet to its existing customers sales silicon chips, IT is an open question. The Internet silicon products for PC and IT infrastructure, and renesas electronics products for automobile manufacturers."
Internet silicon chips used in industry, mobile applications and infrastructure, to take over the company will expand renesas electronics analog chips product portfolio, will also let renesas electronics in a $10 billion power management chip market to gain market position. Wu jing is expected, by integrating these products, four to five years will generate $170 million in revenue each year.
Gartner research digital display, as of late last year, based in Tokyo, renesas electronics in terms of market share is the world's third largest chipmaker, its market share of 9.1%.
The acquisition need access to the committee on foreign investment in the United States (CFIUS) approval, the agency main review foreign investment transactions involved if there is a potential national security issues.
Renesas electronics now controls the global automotive microcontroller chips used nearly 40% market share, in the purchase transaction is completed, it will control the Internet all silicon. It hopes to complete the deal before in June 2017.
Sources revealed that renesas electronics beat American bidders Maxim Integrated Products Inc and finally win the si er. Silicon renesas electronics commitment to the Internet, can use its automotive customer network in order to enhance the related business.
