Renesas acquires IDT for $6.7 billion, enables autonomous vehicle future

Renesas acquires IDT for $6.7 billion, enables autonomous vehicle future

Renesas - autonomous vehicle

Japanese semiconductor solutions provider Renesas has agreed to buy California-based Integrated Device Technology (IDT) for approximately $6.7 billion, in a move that sees it well placed to provide a wide range of products essential to self-driving vehicles.

Renesas is a leading provider of embedded processors, while IDT specialises in sensors, connectivity and wireless power. Together, the companies’ products are poised to improve performance and efficiency in high-computing electronic systems.

The initiative will see Renesas expand its analogue solutions line-up and strengthen its kit solution offerings that combine its microcontrollers (MCUs), system-on-chips (SoCs) and analogue products.

Driving change

Renesas has its sights set on the emerging autonomous driving sector, as well as electric and hybrid vehicles. Its broadened product offerings will play a key part in achieving this growth strategy.

The RF, advanced timing, memory interface and power management, optical interconnect, wireless power, and smart sensor expertise of IDT will be central to Renesas’s relevance to the automotive sector.

The industrial and infrastructure segments, with the sweeping changes being introduced by Industry 4.0 (and those to come from 5G), wireless communications, and the wider IoT segment will all play a big part in Renesas ambitions too.

“This acquisition will bring us complementary, market-leading analogue mixed-signal assets and an incredibly talented group of professionals to help us boost our embedded solution capabilities,” said Bunsei Kure, Representative Director, President and CEO of Renesas. “IDT’s products combined with our MCUs, SoCs and power management ICs will enable Renesas to widen its product offerings as well as to expand its reach into areas such as the growing data economy-related space.”

Gregory L. Waters, President and CEO of IDT said:

The combination of Integrated Device Technology’s analogue mixed-signal leadership with Renesas’ world-leading microcontroller and automotive/industrial franchise creates a new global powerhouse.

“The Combined company will possess the key capabilities that customers in the modern data economy demand.”

Internet of Business says

The limited overlap between Renesas and IDT product stacks, and their complementary nature, mean the acquisition looks like a sound move. It builds on the purchase of Intersil in February 2017, which brought Renesas greater power management and precision analogue capabilities.

With autonomous vehicles requiring a level of technological integration and development not previously required of the automotive sector, Renesas’s ability to offer combined, complimentary products will appeal.

More broadly, the growing adoption of IoT technology throughout industry means the market for Renesas’s offerings will only grow, which is reflected in the $6.7 billion valuation of IDT.

In related news, a £106 million package for projects developing green battery, vehicle and refuelling technology is to be unveiled today by the prime minister at the UK’s first ever Zero Emission Vehicle (ZEV) Summit.

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