iPhone maker said to be among bidders for loss-making Japanese company
Renesas Electronics Corp is talking with Apple and other potential buyers of a stake in a smartphone display chip unit, as the struggling Japanese chipmaker restructures its business around the automotive industry, a source said.
Renesas is considering selling its 55% stake in Renesas SP Driver, which makes semiconductors that control displays, and which sources said is one of several Japanese suppliers of components for Apple's iPhone.
Apple has been tightening control over its supply chain to keep up with main rival Samsung Electronics and stay ahead of fast-growing Chinese manufacturers such as Huawei Technologies.
The US manufacturer was one of a number of companies Renesas met to discuss selling the stake, the source said on Wednesday.
Renesas, which has racked up nearly 650bn yen ($6.28bn) in net losses during eight years in the red, said on Wednesday it was considering selling the unit but declined to comment further.
The Japanese company could sell Apple its stake for 50bn yen by the summer, said the Nikkei business daily, which first reported on the talks with Apple.
Japan's Sharp Corporatoin could also sell its 25% stake in the unit if requested to do so by Apple, the Nikkei said. Taiwan's Powerchip owns the remaining stake.
Apple did not respond to an email request for comment.
Shares of Renesas surged after the report by as much as 19% to 934 yen, their highest in more than three years. They had pulled back by early afternoon to 828 yen, up 5.6%, compared with a 1.2% rise in the benchmark index.
Renesas, formed from the struggling chip divisions of three Japanese electronics conglomerates, received a 150bn yen bailout in September from major customers and a government-led fund, countering a bid by US private equity firm KKR & Co LP .
Electronics manufacturers Japan Display Inc and Sharp, along with South Korea's LG Display, are set to make larger screens for Apple's next iPhone - dubbed by analysts the iPhone 6 - which is widely expected to be released this autumn, supply chain sources said.
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| An Apple iPhone being used at the Macworld/iWorld 2014 iFan event at the Moscone Center in San Francisco, California. Photograph: John G Mabanglo/EPA |
Renesas Electronics Corp is talking with Apple and other potential buyers of a stake in a smartphone display chip unit, as the struggling Japanese chipmaker restructures its business around the automotive industry, a source said.
Renesas is considering selling its 55% stake in Renesas SP Driver, which makes semiconductors that control displays, and which sources said is one of several Japanese suppliers of components for Apple's iPhone.
Apple has been tightening control over its supply chain to keep up with main rival Samsung Electronics and stay ahead of fast-growing Chinese manufacturers such as Huawei Technologies.
The US manufacturer was one of a number of companies Renesas met to discuss selling the stake, the source said on Wednesday.
Renesas, which has racked up nearly 650bn yen ($6.28bn) in net losses during eight years in the red, said on Wednesday it was considering selling the unit but declined to comment further.
The Japanese company could sell Apple its stake for 50bn yen by the summer, said the Nikkei business daily, which first reported on the talks with Apple.
Japan's Sharp Corporatoin could also sell its 25% stake in the unit if requested to do so by Apple, the Nikkei said. Taiwan's Powerchip owns the remaining stake.
Apple did not respond to an email request for comment.
Shares of Renesas surged after the report by as much as 19% to 934 yen, their highest in more than three years. They had pulled back by early afternoon to 828 yen, up 5.6%, compared with a 1.2% rise in the benchmark index.
Renesas, formed from the struggling chip divisions of three Japanese electronics conglomerates, received a 150bn yen bailout in September from major customers and a government-led fund, countering a bid by US private equity firm KKR & Co LP .
Electronics manufacturers Japan Display Inc and Sharp, along with South Korea's LG Display, are set to make larger screens for Apple's next iPhone - dubbed by analysts the iPhone 6 - which is widely expected to be released this autumn, supply chain sources said.
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