Apple deal to acquire Japanese display chipmaker Renesas SP Drivers falls apart

iphone5s-hero-2Earlier this year, a report from Nikkei suggested Apple was ready to purchase Renesas SP Drivers, a division of Renesas Electronics that produces chips for smartphone displays including those found in the iPhone. Now, Reuters is reporting that the negotiations between Renesas and Apple have fallen apart.

Sources told Reuters that Apple and Renesas “failed to make progress” on their negotiations, prompting Renesas to consider an offer from chip maker Synaptics. Apple reportedly was offering to buy Renesas’ 55 percent stake in the display division for 50 billion yen or $479 million.

Apple Inc had also been in talks about a possible purchase of a 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 Renesas technology in its iPhone display, using the LCD chip to improve clarity and overall quality. It is not known how the Synaptics deal will affect the current business relationship between the two companies. Synaptics also is a supplier for Apple, producing touchpads and touchscreens for mobile devices, music players and portable computers.

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Categories: Apple News

  • Foyzul

    I love these business related Apple stories, always gets me interested. Keep them coming iPhoneHacks team.

    • Gautam

      Will do, thanks for the feedback Foyzul.