Brit chip designer Dialog Semi confirms 'advanced discussions' regarding purchase by Japan’s Renesas

Warns €67.50-per-share offer would represent a very tidy premium, but may not happen


Updated British chip design company Dialog Semiconductor has confirmed it is in “advanced discussions” with Japan’s Renesas Electronics Corporation regarding a possible acquisition.

Both companies published Sunday announcements about the deal.

Renesas’ document mentioned recent media speculation about “potential acquisition of a UK-based semiconductor” and said that speculation is “largely accurate.”

Dialog named Renesas in its statement [PDF], adding that the discussions have suggested €67.50-per-share could change hands.

Apple opens Dialog box of cash: $600m deal for a chunk of chip biz's power-management-fu

READ MORE

Dialog’s shares trade on Germany’s XETRA and closed trading last Friday at US$68.26 (£49.70, €56.70). If Renesas makes an offer at €67.50 it would represent a hard-to-resist 16 per cent premium.

When acquisition targets don’t want to be bought, their statements usually say as much, and quite forcefully. This one offers a sound disclaimer to the effect that Dialog will say more when it can but can’t be sure anything will happen, before trailing off into legalese about what Renesas has to say in public about the offer, and when the Japanese company must say it.

Dialog is a fabless chip designer that produces components including Wi-Fi and Bluetooth controller silicon, and counts Apple and Samsung among its customers. Dialog has recently tried to position itself as a supplier to automotive and internet-of-things companies. In 2018, Apple acquired part of the company to get its hands on power management technology for the iPhone.

SK Hynix slips past rivals Samsung and Micron to launch world's first DDR5 DRAM sticks

READ MORE

Renesas operates in similar fields, but has half a dozen fabs in Japan, where it makes ARM-based SoCs in addition to numerous less glamorous components.

At $6.9bn annual revenue and almost 20,000 staff, the Japanese company is rather larger than Dialog’s $1.55bn and 1,850 souls.

Dialog was founded in the USA but uses the UK as its HQ. Edinburgh hosts an R&D facility, and the biz has major facilities in Germany and other locations. If the company is sold, it may be less politically perilous than Softbank’s 2016 acquisition of Brit chip darling Arm. ®

Updated to add

It's now official and agreed: Dialog will be acquired [PDF] for €4.886bn ($5.9bn) in shares by Renesas. The deal is subject to the usual shareholder and regulatory approval.

Similar topics


Other stories you might like

  • Restructure at Arm focused on 'non-engineering' roles
    Meanwhile, CEO wants to vacuum up engineering talent amid return to stock market

    Updated Arm today told The Reg its restructuring ahead of its return to the stock market is focused on cutting "non-engineering" jobs.

    This is after we queried comments made this morning by Arm chief executive Rene Haas in the Financial Times, in which he indicated he was looking to use funds generated by the expected public listing to expand the company, hire more staff, and potentially pursue acquisitions. This comes as some staff face the chop.

    This afternoon we were told by an Arm spokesperson: "Rene was referring more to the fact that Arm continues to invest significantly in its engineering talent, which makes up around 75 percent of the global headcount. For example, we currently have more than 250 engineering roles available globally."

    Continue reading
  • Arm says its Cortex-X3 CPU smokes this Intel laptop silicon
    Chip design house reveals brains of what might be your next ultralight notebook

    Arm has at least one of Intel's more capable mainstream laptop processors in mind with its Cortex-X3 CPU design.

    The British outfit said the X3, revealed Tuesday alongside other CPU and GPU blueprints, is expected to provide an estimated 34 percent higher peak performance than a performance core in Intel's upper mid-range Core i7-1260P processor from this year.

    Arm came to that conclusion, mind you, after running the SPECRate2017_int_base single-threaded benchmark in a simulation of its CPU core design clocked at an equivalent to 3.6GHz with 1MB of L2 and 16MB of L3 cache.

    Continue reading
  • Intel is running rings around AMD and Arm at the edge
    What will it take to loosen the x86 giant's edge stranglehold?

    Analysis Supermicro launched a wave of edge appliances using Intel's newly refreshed Xeon-D processors last week. The launch itself was nothing to write home about, but a thought occurred: with all the hype surrounding the outer reaches of computing that we call the edge, you'd think there would be more competition from chipmakers in this arena.

    So where are all the AMD and Arm-based edge appliances?

    A glance through the catalogs of the major OEMs – Dell, HPE, Lenovo, Inspur, Supermicro – returned plenty of results for AMD servers, but few, if any, validated for edge deployments. In fact, Supermicro was the only one of the five vendors that even offered an AMD-based edge appliance – which used an ageing Epyc processor. Hardly a great showing from AMD. Meanwhile, just one appliance from Inspur used an Arm-based chip from Nvidia.

    Continue reading

Biting the hand that feeds IT © 1998–2022