While the leading chip makers are racing to produce customized chips for their customers, others are breaking through with open-source security in chips to revolutionize the electronics and devices industry.

In a bid to offer customers better service and options, companies are also partnering up with others in allied processes or altogether acquiring them.

In the last few months, companies have made prominent moves as they look to strengthen their supply chains, with a range of challenges plaguing the supply of semiconductors and AI chips.

With this in mind, Japan-based supplier of advanced semiconductor solutions, Renesas Electronics Corporation, made an announcement that could help it boost its offerings to customers.

So, what did Renesas announce and how will it benefit the company? Let’s explore!
 

What Did Renesas Announce?

In a press release published by Renesas, the company announced it struck an acquisition deal with the global leader in electronics design systems and printed circuit boards (PCB) manufacturer, Altium Limited.

According to the release, the “addition of Altium’s design software and cloud platform capabilities enables Renesas to create system-level integrated and open electronics system design and lifecycle management platform,” while bolstering its digitalization strategy.

The acquisition consists of a Scheme Implementation Agreement (SIA), in which Renesas will acquire Altium using a Scheme of Arrangement under Australian law.

While the terms of the transaction are subject to the satisfaction of some conditions, the deal will include Renesas acquiring the outstanding shares of Altium for a cash price of A$68.50 (around $44.73) per share, making Altium a wholly-owned subsidiary of Renesas.

This would represent a total equity value of A$9.1 billion ($5.94 billion) and an enterprise value of A$8.8 billion ($5.75 billion).

The acquisition is expected to be completed in the second half of 2024 but is subject to approval by Altium shareholders, Australian court approval in addition to regulatory approvals and the satisfaction of other customary closing conditions.
 

What Benefits Will This Move Bring Renesas?

 

• The move, which helps Renesas realize its digitalization strategy, will help it establish an integrated and open electronics system design and lifecycle management platform that allows for collaboration across component, subsystem, and system-level design.

• This will also help the company bring enhanced user experiences and innovation at the system level for electronics system designers.

• It will also enable efficient and cost-effective development with shortened production cycles and reduced resource usage.

• Furthermore, the acquisition brings together Altium’s sophisticated cloud platform capabilities with Renesas’ strong portfolio of embedded solutions, combining high-performance processors, analog, power and connectivity.

• The move will also foster a simplified integration of third-party vendors across the ecosystem while enabling seamless digital iteration of design processes to increase overall productivity.

 

What Did Stakeholders Say?

 

• Hidetoshi Shibata, CEO of Renesas, said, “Development processes continue to evolve and accelerate. With our Purpose “To Make Our Lives Easier” in mind, our vision is to make electronics design accessible to the broader market to allow more innovation through a cloud-based platform.”

• [Contd.] “Addition of Altium will enable us to deliver an integrated and open development platform, making it easier for businesses of all sizes and industries to build and scale their systems. We look forward to working with Altium’s talented team as we continue to invest and drive our combined platform to the next level of value for our customers.”

• Aram Mirkazemi, CEO of Altium, said, “I strongly believe that electronics is the single most critical industry to building a smart and sustainable world. Renesas’s visionary leadership and commitment to making electronics accessible to all resonates strongly with Altium.

• [Contd.] “Altium’s vision of industry transformation finds its fullest expression in service of this grand vision of Renesas. Having worked closely with Renesas as a partner for nearly two years, we are excited to be part of the Renesas team as we continue to successfully execute and grow.”

Do you think this move by Renesas Electronics will help propel its customer base and gain market share in the blooming chips market? Will we see more organizations make strategic acquisitions in the semiconductor industry?

Let us know in the comments below!