$2B Deal! SiTime in Talks to Buy Renesas Timing Unit

According to people familiar with the matter, U.S.-based timing chip specialist SiTime is in talks to acquire the timing solutions business of Renesas Electronics, a move that could significantly reshape the global clock and synchronization chip market for data centers, networking, and wireless infrastructure.

The Renesas unit mainly develops clock generators and synchronization devices used in telecom networks, data centers, and high-speed communications. If a deal is reached, the business could be valued at up to $2 billion, including debt, making it the largest acquisition in SiTime's history.

Sources say discussions are still ongoing and no final agreement has been made. The deal could still change in structure, and other bidders may enter the process.

Investors reacted quickly to the news. Renesas shares jumped as much as 7.2% in Tokyo trading, marking its biggest one-day gain since late October and outperforming other Japanese chipmakers.

Although this would be a U.S.-to-Japan transaction, SiTime has strong ties to Japan. Its major backer, MegaChips, acquired SiTime more than a decade ago and later supported its public listing. MegaChips still owns about 13% of SiTime, highlighting the long-standing relationship between the companies.

So far this year, SiTime's stock has climbed 34%, giving it a market value of about $7.8 billion. In contrast, Renesas shares are down around 11%, with a current market value near ¥3.4 trillion ($21.9 billion).