Renesas advances sale of JV stake with Synaptics

Renesas Electronics Corp. is offering Synaptics Inc. its majority stake in its display chip joint venture with Sharp Corp. and Powerchip Group, the Renesas SP Drivers, Reuters reported.

The purchase of the 55 per cent stake was previously considered by Apple, whose interest in the company that supplies driver chips for iPhone displays anchored on what was believed to be the consolidation of control over quality and cost in its supply chain (see Apple eyes 55 per cent stake in Renesas SP Drivers).

It was reported that the negotiations failed to make progress, prompting Renesas to turn its focus on Synaptics, who was supposedly an Apple supplier.

So far, the companies have remained mum.

The sale of the joint venture share is part of the company's business overhaul, which involves leaving the LCD business entirely to concentrate on embedded solutions for the automotive and industrial markets.

According to Reuters, Sharp is set to follow suit with its 25 per cent stake in a move to shore up its business and enhance revenues. The remaining 20 per cent is held by Powerchip.

Established in 2008, Renesas SP Drivers develops LCD drivers and controllers for small- and medium-sized displays. It operates with a capital of about $51 million, and employs approximately 240 people.