TOKYO (Kyodo) -- Japanese chipmaker Renesas Electronics Corp. is in talks to acquire U.S. chipmaker Integrated Device Technology Inc. for around 600 billion yen ($5.5 billion), sources familiar with the matter said Friday.
Through the acquisition, Renesas aims to obtain knowledge and skills for the development of semiconductors necessary for automated driving, as California-based IDT, with a market capitalization of about 540 billion yen, is known for its communications chips.
Renesas values IDT's communication chip know-how because the speedy transfer of large amounts of data is mandatory for safe automated driving.
Other than automotive content, the demand for communications semiconductors is projected to increase as next-generation 5G mobile communication networks are expected to be introduced around the world.
The Japanese company completed a $3.2 billion buyout of U.S. semiconductor maker Intersil Corp. in 2017.
Renesas was launched in 2010 through the merger of Renesas Technology Corp. -- a joint venture set up by Hitachi Ltd. and Mitsubishi Electric Corp. -- and NEC Electronics Corp.