Apple Inc. is reportedly in talks with Renesas Electronic Group about buying a display chip unit from the Japanese company. Apple sees the purchase as a way to help design new smartphone displays for its iPhones, according to PC Magazine.
A report from the Nikkei Asian Review says that Apple "seems to want to bring this core technology in-house rather than cede development to the supplier as the U.S. company has for much of its growth."
Renesas is looking to possibly sell its 55 percent stake in Renesas SP Driver. The driver creates semiconductors which control displays, and is one of Japan's component suppliers for the iPhone, The Guardian reported.
The report said on Wednesday that Apple is one of the many companies that met with Renesas to discuss the sale of the stake. In order to compete with its main rival, Samsung Electronics, and Chinese manufacturers, such as Huawei Technologies, the Cupertino, Calif.-based company, has been increasing its control over its supply chain.
The Nikkei Asian Review said the Renesas SP is the "world's leading producer of drivers and controllers for small size and midsize LCDs," PC Magazine reported.
The chip unit would be sold by about $480 million (about 50 billion yen), and the deal would be made supposedly by this summer.
If the deal goes through, Japanese corporation Sharp could then sell its 25 percent stake in Renesas SP. The remaining stake is owned by Powerchip from Taiwan.
The report said that 10 percent of battery usage can come from the mobile device displays, PC Magazine reported. A longer battery life provided by an improved display chip can help Apple better compete with Samsung.
Apple's next iPhone, the iPhone 6, is expected to receive bigger screens made by Sharp, Japan Display Inc. and LG Display from South Korea, The Guardian reported. The iPhone 6 is expected to be available this Fall.
