Japan's Renesas keen on acquisitions, may issue shares to build warchest: CEO

Japanese automotive chip maker Renesas Electronics Corp is hungry for more acquisitions amid a wave of megamergers in the industry and may need to issue equity shares sometime in the future to build its warchest, its CEO said on Monday.
Renesas Electronics Corp's Chief Executive Officer Bunsei Kure attends a group interview at the company's headquarters in Tokyo, Japan, April 10, 2017. REUTERS/Toru Hanai
Renesas Electronics Corp's Chief Executive Officer Bunsei Kure attends a group interview at the company's headquarters in Tokyo, Japan, April 10, 2017. REUTERS/Toru Hanai

"The fragmented (automotive chip) market will be eventually consolidated into some dominant players" posing a long-term threat to Renesas, currently the world's No. 3, Renesas chief executive Bunsei Kure told reporters.

NXP Semiconductors NV, the industry leader, has agreed to be acquired by Qualcomm Inc in a $47 billion deal to retain its lead in the fast-growing automotive chips market.

And more recently, Intel Corp agreed to buy Israeli autonomous vehicle technology firm Mobileye for $15.3 billion.

Kure said Renesas, which bought U.S. chipmaker Intersil Corp for $3.2 billion this year, is constantly reviewing its list of potential acquisition targets, comprising around several dozen names in fields such as sensors and security.

To be ready for major acquisitions, Kure said the company would probably need to raise capital by issuing shares "at some point" in the future. "We want to be prepared to move when necessary," he said.

According to data research firm IHS, Renesas had an automotive chip market share of 9.0 percent in 2016, ranking after NXP with 12.6 percent and Infineon Technologies with 9.5 percent.

Reuters

Other News

AI offers both opportunities, challenges for Vietnam's growth

AI offers both opportunities, challenges for Vietnam's growth

Dr. Ho Duc Thang, a full-time member of the National Assembly’s Committee for Cultural and Educational, said productivity is the key to sustaining double-digit economic growth, and AI has greater potential to improve productivity than any previous technology.

Top leader unveils people-centred vision for new development model

Top leader unveils people-centred vision for new development model

Vietnam's growth model, long fueled by low-cost labour, resource extraction, contract manufacturing, expanded investment, and capital accumulation, has run out of road. The country now needs a sweeping reform agenda to shift from extensive growth to a model driven by productivity, knowledge, science and technology, innovation, and digital transformation.

First national semiconductor chip prototyping support centre makes debut

First national semiconductor chip prototyping support centre makes debut

Vietnam's semiconductor ecosystem now comprises around 60 chip design companies, some 7,000 chip design engineers and 166 universities offering semiconductor-related training programmes. Initial registrations from 12 organisations indicate demand for the prototyping of approximately 30,000 chips.

Vietnam targets at least 10 large strategic technology firms by 2030

Vietnam targets at least 10 large strategic technology firms by 2030

Deputy Prime Minister Ho Quoc Dung has signed a decision approving a plan to develop large domestic strategic technology enterprises in the 2026–2030 period, aimed at advancing digital infrastructure, digital human resources, digital data, strategic technologies and cybersecurity.

Protecting users crucial in building digital trust: Experts

Protecting users crucial in building digital trust: Experts

In Vietnam, digital transformation in the finance and banking sector is accelerating cashless payments, expanding access to financial services, improving market transparency and supporting economic growth and macroeconomic management.

Fostering skilled workforce for innovation era: experts

Fostering skilled workforce for innovation era: experts

Experts said close coordination among State management agencies, research institutes, universities, and businesses will improve training quality and serve the dual goals of quality education and practical research application.

Startup forum bridges Silicon Valley and local innovation ecosystem

Startup forum bridges Silicon Valley and local innovation ecosystem

The University of Economics Ho Chi Minh City (UEH), Saigon Asset Management (SAM), and Plug and Play Tech Centre co-hosted the “From Vietnam to Silicon Valley” forum, exploring AI innovation, venture capital, and pathways to integrate Vietnam’s startup ecosystem with Silicon Valley and global markets.