Renesas Said to Be in Talks for $3 Billion Intersil Acquisition

Japan’s Renesas Electronics Corp. is in talks to acquire U.S. chipmaker Intersil Corp. for about 300 billion yen ($3 billion), a person with knowledge of the matter said.

No agreement has been reached, and the discussions may not result in a deal, the person said, asking not to be identified as the information is private. Renesas shares erased early gains and were down 2.4 percent to 599 yen at 10:17 a.m. in Tokyo.

Renesas Chief Executive Officer Bunsei Kure said after taking office in June that he would look overseas for research and development. Renesas has begun to relocate some development to outside Japan, employing about 600 researchers in Vietnam and 300 in China, as well as some in Malaysia, Kure said at the time.

The Nikkei Asian Review reported earlier Monday that Renesas is in final negotiations to acquire Milpitas, California-based Intersil, without saying where it got the information. Renesas said in a statement the acquisition of a U.S. chipmaker is among several options the company is considering to expand, though it hasn’t made any final decisions. A spokeswoman for Intersil declined to comment.

Intersil shares have climbed 23 percent this year, giving the company a market value of $2.1 billion. Renesas was formed in 2010 when government-backed investment fund Innovation Network Corp. of Japan brought together the struggling chip operations of Mitsubishi Electric Corp., Hitachi Ltd. and NEC Corp. 

INCJ controls about 69 percent of the company, according to data compiled by Bloomberg.