SiTime acquires Renesas' clock circuit business

The American semiconductor company SiTime has signed an agreement to acquire parts of Renesas Electronics' timing business. The deal involves $1.5 billion in cash and approximately 4.13 million newly issued SiTime shares. The boards of both companies have unanimously approved the transaction, which is expected to be completed before the end of 2026, pending necessary regulatory approvals. The acquired business is anticipated to contribute about $300 million in revenue in the first twelve months, with a gross margin of around 70 percent. According to SiTime, approximately 75 percent of the revenue will come from AI data center and communication infrastructure applications, with the remainder from industrial and automotive segments. The acquisition includes a broad range of clock circuits, such as clock generators, buffers, network synchronizers, and jitter attenuators. The business reportedly has over 10,000 customers globally. In connection with the deal, SiTime and Renesas have also signed a memorandum of understanding to evaluate integrating SiTime's MEMS resonators into Renesas' embedded computing products, such as microcontrollers and system-on-chips. Upon completion of the deal, Renesas CEO Hidetoshi Shibata is expected to join SiTime's board of directors