“Shares of chip maker Renesas Electronics Corp. surged in trading Wednesday after a report that Apple is considering buying that a unit of the company that designs chips for smartphone displays,” Shawn Schroter reports for MarketWatch.
“Apple has its eye on Renesas SP Drivers, a joint venture with Sharp Corp. and Taiwan’s Powerchip, Japanese business daily the Nikkei reported. Apple is said to be seeking Renesas’ entire 55% stake for an estimated Yen50 billion ($479 million), the daily also said,” Schroter reports. “In early trading on the Tokyo Stock Exchange, the chip makers shares surged over 10% at one point compared with a 0.7% gain in the benchmark Nikkei Stock Average.”
Schroter reports, “The Nikkei report described Renesas SP as the world’s leading producer of drivers and controllers for small and midsize LCDs, with a market share of around one-third. It also said that Sharp owns 25% of the venture, with Powerchip, which handles manufacturing, holding the remaining 20%.”
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