The companies are already in collaboration pertaining to certain Renesas’ automotive computing platforms


Japanese semiconductor manufacturer Renesas is looking to offer €67.5 per share to acquire Dialog Semiconductor. (Credit: Renesas Electronics Corporation)

Renesas Electronics and UK-based Dialog Semiconductor have confirmed media speculation that the parties are in advanced discussions regarding a potential cash offer of €67.5 per share to the latter.

The price offered by the Japanese semiconductor manufacturer is estimated to value Dialog Semiconductor at around $6bn (€4.99bn).

Renesas Electronics said that it has time until 7 March 2021 to either announce a firm intention to make an offer to acquire the British firm or for calling off the talks.

The Japanese firm stated: “This announcement does not amount to an announcement of a firm intention to make an offer. There can be no certainty that this approach will result in an offer being made, or as to the terms of any such offer.”

Renesas Electronics has engaged Nomura International as its financial adviser pertaining to the talks, while Dialog Semiconductor’s financial adviser is JP Morgan Cazenove.

Dialog Semiconductor is a fabless semiconductor company, which is mainly focused on developing mixed-signal integrated circuits (ICs). The company caters to the consumer electronics industry and certain segments of the automotive and industrial end-markets.

It provides battery management, AC/DC power conversion, Bluetooth low energy, Wi-Fi, and industrial ICs.

Dialog Semiconductor and Renesas Electronics have already been in collaboration. In August 2020, the British semiconductor company expanded the collaboration by introducing its power management IC (PMIC) solutions for the Japanese firm’s automotive computing platforms R-Car M3 and R-Car E3.

The companies’ previous collaboration was restricted to the R-Car Gen 2 and R-Car H3 platforms of Renesas Electronics.

Last November, Dialog Semiconductor was selected by satellite company AST & Science for developing four custom mixed-signal and radio frequency advanced communication custom ICs (RF ASICs) for its SpaceMobile network.