Renesas In Talks With Apple, Others On Sale Of Display Chip Unit: Source

[Ron Burgundy]

Renesas Electronics Corp is talking with Apple Inc and other potential buyers of a stake in a smartphone display chip unit, as the struggling Japanese chipmaker restructures its business around the automotive industry, said a person familiar with the matter. Renesas is considering selling its 55 percent stake in Renesas SP Driver which makes semiconductors that control displays, and which sources said is one of several Japanese suppliers of components for Apple's iPhone. Apple has been tightening control over its supply chain to keep up with main rival Samsung Electronics Co Ltd and stay ahead of fast-growing Chinese manufacturers such as Huawei Technologies Co Ltd. The U.S. manufacturer was one of a number of companies Renesas met to discuss selling the stake, the source said on Wednesday. Renesas, which has racked up nearly 650 billion yen ($6.28 billion) in net losses during eight years in the red, said on Wednesday it was considering selling the unit but declined to comment further.

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