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Apple is Rumored to Buy Japanese iPhone Chip Producing Venture to Secure Supply Chain

April 4, 2014 By Jack M. Robinson Leave a Comment

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File photo of Renesas Electronics Corp's chip at the company's office in TokyoWhen it comes to Apple and the rumors revolving around its new products or future business strategies, it seems everything is possible for the tech giant, especially these days, when the smartphone market is not only a bit over – saturated with bigger, better, faster and more appealing products, but Samsung (and generally Android – powered smartphones) are disputing Apple’s supremacy in the field and taking over the market share.

With these general facts in mind, lately Apple is rumored to buy Japanese iPhone chip producing venture – that goes by the name of Renesas SP Driver and which represents the division of Renesas Electronics Corp. This particular division produces key microchips for iPhone screens and even if it is unusual that the American tech giant to buy a Japanese company, the deal is said to be able to ensure Apple’s supply chain, a crucial position in the never – ending and fierce battle it has to fight against its competitors.

Why is it so important that Apple is rumored to buy Japanese iPhone chip producing venture?

According to analysts and business strategists, this deal will secure Apple’s position as a strong challenger in the smartphone market. The sources emphasized that

while up to now Apple has relied on outside suppliers for many key parts, Samsung makes vital parts for its Galaxy smartphones, from screens to chips to capacitors, in-house. That gives it greater control over costs, production schedules and specifications, as well as product information.

But Apple isn’t the only one who wants to buy the Japanese company. Although the names of the other players haven’t been made public (and neither Renesas SP Driver, nor Apple commented on their future common business plan when asked by the media), the stakes are high. The numbers speak for themselves, as the Japanese press is suggesting that Apple intends to spend $483 million by summer to get the Japanese venture under its own control.

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Filed Under: Technology Tagged With: Apple, Samsung, Smartphones

About Jack M. Robinson

Jack enjoys keeping abreast of everything connected to economic indicators. A School of Journalism, Michigan State University graduate, he loves covering monetary policy and company financials and has a particular interest in writing about the latest gadgets.

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