Seeking Alpha

Nikkei: Apple looking to buy 55% stake in LCD chip supplier for ¥50B

The Nikkei reports Apple (AAPL +0.9%) is in talks with Renesas (RNECF) to buy its 55% stake in iPhone LCD driver IC supplier Renesas SP Drivers, and is looking to acquire it for ¥50B ($479M).

Sharp (SHCAY) owns 25% of Renesas SP, and Taiwan's Powerchip 20%. Sharp is expected to sell its stake to Apple if the company asks for a a deal after buying Renesas' interest.

Apple, which already develops its own app processors and fingerprint sensors, reportedly "wants to meld the design of core display components into overall product development."

A deal could be a positive for Himax (HIMX +3.9%) and MagnaChip (MX -0.6%), given Renesas SP's other clients would start looking for alternative LCD driver suppliers. Renesas SP has an estimated ~33% share of the market for small and mid-sized LCD drivers/controllers. It had revenue of ¥60B ($575M) during the fiscal year ending March 31.

Earlier: 4.7" iPhone LCD production reportedly set to start

From other sites
Comments (10)
  • bjamesh
    , contributor
    Comments (206) | Send Message
    Putting those offshore ¥ profits to work?
    1 Apr 2014, 04:26 PM Reply Like
  • Buzzly3
    , contributor
    Comments (97) | Send Message
    There are no LCD suppliers to buy onshore even if Apple wants to.
    1 Apr 2014, 06:37 PM Reply Like
  • WisPokerGuy
    , contributor
    Comments (1153) | Send Message
    $479 million? What is that about one week of interest on the $160 billion Apple has stuffed under the mattress?
    1 Apr 2014, 10:19 PM Reply Like
  • 2ng
    , contributor
    Comments (182) | Send Message
    This is some intelligent non-nest-and-whatsapp-... buying
    1 Apr 2014, 06:01 PM Reply Like
  • Van Hyder
    , contributor
    Comments (172) | Send Message
    Maybe Cirrus is next . . . Just buy all the companies that supply them
    1 Apr 2014, 08:15 PM Reply Like
  • 808Amigo
    , contributor
    Comments (453) | Send Message
    2 scoops of some HIMX, please.
    1 Apr 2014, 08:34 PM Reply Like
  • SammyDaBull
    , contributor
    Comments (5) | Send Message
    Definitely a positive for HIMAX if the deals made. Google better sure up there stake in HIMAX
    1 Apr 2014, 11:15 PM Reply Like
  • platonicbomb
    , contributor
    Comments (1607) | Send Message
    How are this company's products (drivers) different from those of $PXLW?
    2 Apr 2014, 05:00 AM Reply Like
  • EternalOptimist
    , contributor
    Comments (31) | Send Message
    This my concern as well. Time to do some more research, as I still have a little in $PXLW and some of it's value is due to a potential ongoing relationship with Apple. I honesty don't know enough about Renesas as I should.
    2 Apr 2014, 01:40 PM Reply Like
  • platonicbomb
    , contributor
    Comments (1607) | Send Message
    M. Gomes replied to this concern on a PXLW article comment section. The Apple acquisition target does not compete with Pixelworks.
    2 Apr 2014, 01:55 PM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Screener: Search and filter by asset class, strategy, theme, performance, yield, and much more
ETF Performance: View ETF performance across key asset classes and investing themes
ETF Investing Guide: Learn how to build and manage a well-diversified, low cost ETF portfolio
ETF Selector: An explanation of how to select and use ETFs