Apple in talks to buy stake in Japanese chipmaker Renesas Electronics

2 Apr 2014

In a bid to improve image sharpness and battery life of its smartphones and tablet devices Apple is in talks with Japanese chip designer Renesas Electronics with a view to take a majority stake in the company.

The Californian tech giant is prepared to pay US$479m for a 55pc stake, according to Nikkei.

Apple is particularly focused on gaining access to Renesas SP Drivers, a joint venture between Sharp and Taiwanese chipmaker Powerchip.

The company is a leading producer of drivers and controllers for small and midsize LCDs and has captured a third share of the available market.

These chips are key to the quality and performance of a smartphone’s energy efficiency, accounting for around 10pc of battery usage.

Apple gets all of its LCD display chips from Renesas SP and sees this area of performance of a smartphone as a critical selling point and a vital part of core product development.

John Kennedy is a journalist who served as editor of Silicon Republic for 17 years