Renesas Electronics is considering selling its timing chip division for approximately $2 billion, according to people familiar with the matter, Reuters reported. The Japanese semiconductor manufacturer has engaged JPMorgan to explore a divestment of the unit.
The timing business, which Renesas gained through its 2019 acquisition of Integrated Device Technology, produces specialized chips that synchronize data flow in high-speed networks. These components serve data centers, telecommunications infrastructure and 5G networks.
Texas Instruments and Germany’s Infineon Technologies are among potential buyers, the people said. The companies and JPMorgan declined to comment.
The sale would come as Renesas navigates financial pressures from a troubled partnership with Wolfspeed. The Japanese company provided $2 billion to the U.S. silicon carbide supplier in 2023, only to convert that into equity and debt securities after Wolfspeed encountered difficulties earlier this year. Renesas disclosed an expected impairment loss from that restructuring in June.
The chipmaker, which has pursued acquisitions including Dialog Semiconductor and design software firm Altium, now appears focused on raising capital and concentrating on its core automotive and industrial markets. Renesas sold its radio frequency components division to India’s CG Power last year for $36 million.
The proposed transaction reflects broader industry consolidation as semiconductor makers reassess portfolios following rapid expansion.
