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Breakingviews - Japan's Renesas steers towards chip M&A pileup


Breakingviews
3 Min Read
FILE PHOTO: Renesas Electronics Corp s logos are pictured at the company s conference in Tokyo, Japan, April 11, 2017. REUTERS/Toru Hanai/File Photo - RC2RNL9CK2W3
HONG KONG (Reuters Breakingviews) - Japan’s Renesas Electronics is in danger of overheating its deal engine. The company disclosed on Monday that it was in advanced talks to buy UK-based Dialog Semiconductor less than two years after taking over similarly sized Integrated Device Technology. Booming demand for chips used in cars makes another acquisition strategically appealing, but the financial logic looks less impressive.
This latest takeover plan coincides with a worldwide semiconductor shortage. A faster-than-expected recovery in cars, smartphones and other electronics is wreaking havoc across the automotive industry. That should bode well for $21 billion Renesas, already the world’s third-largest chip supplier to carmakers, according to Fitch Ratings. As vehicles become ....

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