May 18, 2015, 12:35 PM
- Xilinx (XLNX +1.3%) is higher after the NY Post reported Intel and Xilinx FPGA archrival Altera have resumed buyout talks. Shares jumped in March after the first Intel/Altera report arrived.
- Last week, Reuters reported Avago (AVGO +1.3%) has reached out to Xilinx, analog/mixed-signal chipmaker Maxim (MXIM +0.6%), and Japanese microcontroller/analog chipmaker Renesas (OTCPK:RNECF) about potential deals. Sources also state Avago has talked with P-E firm Silver Lake about partnering on a deal.
- Avago has acquired LSI, PLX Technology, and Emulex over the last 2 years, and was previously reported to have bid for Freescale before the company agreed to merge with NXP. The company is one of many chipmakers taking part in a consolidation wave driven by both cost and product synergies.
Jun. 10, 2014, 4:24 PM
- Synaptics (SYNA) is acquiring Renesas' (RNECF) LCD driver IC unit in full for $475M in cash, or an enterprise value of $515M. Past reports had Synaptics only initially buying Renesas' 55% stake in the business.
- The deal is expected to close in calendar Q4, be financed with a combo of cash and $300M in debt financing, and be immediately accretive to EPS. It adds to a broader consolidation wave that has hit the semi industry over the last year.
- The Renesas unit (#1 in the mobile LCD driver market) had revenue of $650M and cash flow of $100M in the fiscal year ending in March - that means Synaptics is paying only 0.8x trailing sales. Synapitcs (current market cap of $2.4B) predicts the purchase will grow its addressable market by 1.5x, and "accelerate its product roadmap for touch-and-display driver integration."
- Separately, Synaptics is hiking its FQ4 revenue guidance to $300M-$310M, above a prior $275M-$295M and a $285.8M consensus. The touchpad/touch controller vendor says both mobile and PC demand has been better than expected.
- Synaptics is halted. Renesas rival Himax (HIMX) -2.3% AH.
- Previous: Analyst commentary on Synaptics/Renesas
Apr. 1, 2014, 3:58 PM
- 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
NEC Electronics Corp. researches, develops and manufactures electronic components such as semiconductors and integrated devices.
Sector: Consumer Goods
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