Apple and Renesas SP Drivers Break Purchase Negotiations

According to Reuters, Apple will not buy the display division of Renesas Electronics

Since the beginning of the year there has been speculation about Apple’s possible acquisition of a division of the Japanese company Renesas Electronics . This company, which is owned 55% by Hitachi Ltd and 45% by Mitsubishi Electric Corporation, manufactures analogue and digital systems, microcontrollers, semiconductors, etc.

The division or subsidiary that Cupertino was interested in is Renesas SP Drivers and is responsible for the manufacture of chips for mobile screens . Although the components of the Japanese company have already been part of Apple’s devices, such as the LCD chip to increase the quality of the iPhone screen, the American company wanted to have greater control over the design and production process of these circuits .

Apple and Renesas SP Drivers Break Purchase Negotiations
Apple and Renesas SP Drivers Break Purchase Negotiations

Well, it seems that the negotiations have not reached a good end and the talks have been interrupted without knowing for the moment the reason , according to the news agency Reuters citing sources close to the operation.

Another company that had shown interest in Renesas SP Drivers was Synaptics Inc, also a manufacturer of chips for smartphones and which, supposedly, would be chosen to take over the majority share package of Renesas Electronics’ division after failing to reach an agreement with Apple.

Apple has already acquired several companies providing production control and cost reduction

If this rumour is confirmed, the American giant could have lost a great opportunity to take productive control of a critical component in any mobile device such as the screen , not only at a quality level, but also in terms of increasing battery life, which we should remember, represents 10% of consumption.

Furthermore, leaving aside the benefits in terms of quality and battery consumption, having the production process in the company itself without depending on third parties, results in a reduction in costs, optimisation of logistics and greater control over the stock of components . This was the case, for example, with Apple’s A series processors and the purchase of the company Passif.

The agreement for the acquisition would have meant that Apple would have owned 55% of the shares of Renesas SP Drivers, for which it would have had to pay around 479 million dollars .

We do not know how the lack of agreement will affect the present and future business relationship of the two companies, since, as we can read in iPhoneHacks, apart from mobile screen chips the Japanese company also supplies various types of touch screens used in music players or laptops .

Does Apple need to buy a company that specializes in mobile display chips?

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