Apple in talks to buy Japanese chipmaker, report says

Apple may be looking to acquire a unit of Renesas Electronics that makes display-related silicon, according to a Nikkei report. The deal could be worth close to half a billion dollars.

Apple

Apple is 'looking into' acquiring the unit of a Japan-based chipmaker that makes display-related chips for smartphones, according to Japan's largest business daily.

Apple is eying a unit of Renesas Electronics, according to a Nikkei report that appeared in the Wednesday edition of Nikkei Asian Review. The US company would take over Renesas SP Drivers, a unit that designs chips for smartphone displays and could help Apple 'improve image sharpness and battery life,' according to the report.

Renesas SP Drivers is a joint venture between Renesas, Sharp, and Taiwan's Powerchip. Apple would acquire Renesas's entire 55 percent stake for about 50 billion yen ($479 million), Nikkei reported.

Renesas SP Drivers is a leading supplier of driver and controller chips for small and midsize LCDs, with a share of about one-third of the global market, according to Nikkei. Display driver and controller chips play a key role in the display's quality, performance, and power efficiency.

Sharp owns 25 percent of the venture and Powerchip, which handles manufacturing, holds the remaining 20 percent, Nikkei said. If a deal is struck with Renesas, Sharp would sell all its shares in Renesas SP Drivers to Apple if requested, the report claimed.

'With its share of the smartphone market slipping, Apple seems to want to bring this core technology in-house rather than cede development to [a] supplier,' the newspaper said.

Apple did not respond to a request for comment.