Renesas in Talks to Buy U.S. Chipmaker

Tokyo-based chipmaker Renesas Electronics Corp. is considering buying U.S. rival Integrated Device Technology Inc.

Renesas confirms it is in “late stage” negotiations with California-based IDT. Sources tell The Wall Street Journal that the deal hasn’t been finalized and is one of several options being evaluated by Renesas.

The potential acquisition is valued as much as $6 billion, according to The Nikkei, which was the first to report the story. Renesas and IDT are expected to meet next week.

Renesas generates more than half its revenue from automotive customers and ranks second in the market, trailing only NXP Semiconductors NV. Last year the Japanese company bought Intersil Corp., a U.S. chipmaker that specializes in semiconductors for electrified vehicle systems, for $3.2 billion.

Buying IDT would support Renesas’ shift toward autonomous vehicle systems. Last year, Renesas formed the R-Car Consortium and announced plans to supply semiconductors and controllers to Toyota and Denso for the carmaker’s automated driving systems. Denso increased its stake in the Japanese chipmaker to 5% in March.