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Renesas Electronics agrees to buy US chipmaker IDT for $6.7 bil.

This file photo taken in May 2012 shows Renesas Electronics Corp.'s headquarters in Tokyo. (Kyodo)

TOKYO (Kyodo) -- Japanese semiconductor maker Renesas Electronics Corp. said Tuesday it has agreed to acquire U.S. chipmaker Integrated Device Technology Inc. for about $6.7 billion, in an effort to strengthen its automotive chip business.

Renesas will turn the California-based maker into a wholly-owned subsidiary, with the acquisition expected to be completed by June 2019.

The company will pay $49 per share in cash for all IDT's outstanding shares and plans to finance the deal with cash and 679 billion yen ($6 billion) in bank loans, according to a press release.

Renesas is joining other global rivals in speeding up the development of automated technologies amid intensifying competition. Through the acquisition, it aims to obtain IDT's know-how for self-driving systems, for which the speedy transfer of large amounts of data is necessary.

"We can't survive if we don't seek to win (in the field of self-driving technology)," Renesas President Bunsei Kure told a press conference in Tokyo.

IDT is known for its communications chips, used for sensor and data centers. It logged sales of 92.7 billion yen on a consolidated basis for the year that ended in March.

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.

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