Japan’s Renesas to Sell Display Chip Business to Synaptics Instead of Apple

Last month it was rumoured Apple was in talks to acquire Japan’s Renesas SP Drivers, a joint venture between the latter with Sharp (25% stake) and Taiwan’s Powerchip (20% stake), makers of drivers and controllers for LCD displays.

A new report today from Reuters says sources have noted Apple has lost out on the bid for Renesas SP Driver, as the latter has decided to sell to Synaptics Inc.:

Renesas Electronics Corp plans to sell its majority stake in a maker of iPhone display chips to Synaptics Inc, another smartphone chip supplier, according to sources familiar with the matter.

Apple Inc had also been in talks about a possible purchase of the stake in Renesas SP Driver in what was seen as a potential move to shore up its global supply chain, but the sources said those talks failed to make progress and Renesas had narrowed its consideration to Synaptics.

Apple was hoping to win the bid for a 55 per cent stake in Renesas, at a rumoured price of $479 million, as the latter is the exclusive supplier of display chips for the iPhone. The Japanese company is looking to concentrate on its auto sector business and dispose its non-core assets.