TOKYO: Renesas Electronics plans to sell its majority stake in a maker of iPhone display chips to Synaptics, another smartphone chip supplier, according to sources familiar with the matter.
Apple had also been in talks about a possible purchase of the stake in Renesas SP Driver in what was seen as a potential move to shore up its global supply chain, but the sources said those talks failed to make progress and Renesas had narrowed its consideration to Synaptics.
Renesas has been looking to sell its 55% stake in the unit that is the sole supplier of display driver chips for Apple's iPhone, as it focuses on customers in the auto sector and sheds non-core assets.
Display maker Sharp, which holds 25% of Renesas SP Driver and is unloading assets to bolster its finances, is also expected to sell its stake once Renesas reaches an agreement.
Taiwan's Powerchip holds the remaining 20%.
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