IDT Deal Fuels Renesas Growth Ambitions

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Junko Yoshida, EETimes, TOKYO, Sept. 12, 2018 – Renesas Electronics' plan to acquire Integrated Device Technology (IDT) signals the Japanese giant's appetite to expand well beyond the automotive sector and delve into data centers and communications. By leveraging IDT's strengths in RF, power, sensors and real-time interconnect, Renesas will be poised to build a synergistic product/technology portfolio across its existing markets in automotive, industrial and the Internet of Things (IoT).

The M&A frenzy among semiconductor companies has tapered down in the past two years. The biggest acquisition agreement in 2018 was Microchip buying Microsemi at $8.35 billion. Renesas snagging IDT at $6.7 billion is the year's runner-up, observed Rob Lineback, senior market research analyst at IC Insights.

Industry observers generally welcomed the announcement. IC Insights' Lineback called the deal "a pretty good fit" for Renesas "with very little overlap, including the Intersil business," which Renesas acquired a year ago. 

IDT likes to refer to itself "as an analog mixed-signal systems IC supplier versus an IoT or embedded solutions provider," observed Lineback. "Renesas should benefit from IDT's focus in sensors, signal conditioning, and actuator/motor control ICs that can fit well into its large microcontroller and automotive presence."

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