Renesas believes the deal will help solidify its position as a supplier of devices for autonomous cars and other advanced driver assistance systems. Last year, Renesas acquired another American chipmaker Intersil Corp. for $3.2 billion. The combination of products from Intersil and IDT will give Renesas significant strength and open up new opportunities for revenue generation and growth.
Renesas believes the deal will help solidify its position as a supplier of devices for autonomous cars and other advanced driver assistance systems
The field of autonomous driving and smart cars are gaining much prominence and the production of various components and systems related to this is a lucrative space. Several companies are looking to tap into the vast opportunities available in this area through partnerships and other tie-ups.
The transaction between Renesas and IDT is subject to regulatory approvals and while it is likely to face scrutiny particularly in the US and in China, the Japanese firm remains confident that the deal will go through as it is not harmful to competition.
Renesas shares rose over 3% during afternoon trading in Tokyo and IDT shares surged more than 10% in Nasdaq and hit a new 52-week high today.