Rumor: Apple wants to buy the market leader for display chips

Apple would like to acquire Renesas SP Drivers, which produces chips for smartphone displays. The acquisition would be part of Apple’s strategy to acquire more technology in-house to compete more effectively.

Apple is said to be in talks with Renesas to acquire the Japanese company’s 55 percent stake in the Renesas SP Drivers joint venture, the usually well-informed Japanese business newspaper Nikkei reported. Renesas SP Drivers is the market leader in the production of drivers and chips for small LCDs, with the joint venture controlling a third of that market. Apple already sources all of its iPhone display chips from Renesas SP. The chips affect the image quality and energy consumption of smartphone screens.

The other participants in the joint venture are Sharp and Powerchip. Sharp is expected to sell its 25 percent stake to Apple once the deal with Renesas closes. According to Nikkei, this could be the case around the summer. The 240 Japanese employees could continue to work as usual and there are currently no plans to transfer production to the US.

The acquisition would be part of Apple’s drive to get more production technology in-house. The manufacturer would also set up production facilities for strong sapphire glass, which would be used to protect the screens of upcoming iPhones.