Apple acquires Renesas RSP enhanced LCD display technology

Apple is rumored to be negotiating with Renesas Electronics to acquire its subsidiary, Renesas SP Drivers. Ruili is currently the leading supplier of liquid crystal display (LCD) chips for iPhone screens for Apple.

According to a report by the Nikkei Asian Review in February this month, Renesas Electronics decided to sell its 55% stake in Ruili, which is also a part of the company’s restructuring plan to completely withdraw from the LCD business. Share. Ruili is the world's largest supplier of medium and small size LCD driver chips, including three manufacturers exclusively supplied to the iPhone monitor screen.

Renesas Electronics has also confirmed to Reuters that the company is negotiating to sell the Ruili equity, but did not provide further details. At the same time, Apple declined to comment.

Ruili Technology issued a short but not denied statement stating: Recently there was media coverage of Ruili’s news, which was not based on the official release of Renesas or Ruili, not only unconfirmed or factual .

As smartphones become more crowded, Apple's interest in acquiring Ruili will further strengthen the control over the quality and cost of its supply chain.

Apple usually uses multiple sources of supply, but its iPhone LCD driver chip is limited to the only vendor. The Nikkei Asia Review said that it is still unclear whether Apple’s motive for this transaction is to avoid losing control of the supplier. Avoiding its only source of supply falling into the competition? Still want to master the manufacturing process in order to improve the quality of the iPhone display?

The LCD driver chip is a key component in determining the quality and energy efficiency of a display; in general, the display accounts for approximately 10% of the total energy usage.

According to the Nikkei Asia Review, Apple will acquire Renesas' 55% stake in Ruili for US$479 million; it is estimated that Ruili's annual revenue is approximately US$577 million, with a profit of 10%.

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