iPhone 5s chips

Apple's rumored half-billion-dollar acquisition of LCD chip manufacturer Renesas is rumored no more, with Renesas instead turning to Synaptics for a sale. Synaptics, a manufacturer of touchpads and touch sensors, as well as a fellow Apple component supplier, is reported to be the only company being considered by Renesas for a sale.

As before, Renesas is aiming to sell a majority 55% stake in their business. Where the talks with Apple fell apart isn't clear; Reuters is citing sources that said that the talks simply "failed to make progress."

Apple is a substantial part of Renesas' business, and Renesas is the exclusive supplier of display chips for the iPhone. Even so, Renesas is looking to get out of that business and focus more on high-margin automotive customers.

Sharp still holds their 25% share of Renesas, and as before is likely to sell once the majority stake of Renesas is sold. Having Synaptics take over Renesas' display chip business could prove to be an interesting move, merging display and touch processors into one chip, or as a pair of co-dependent chips, could result in improved efficiency and capability with cost savings along the way. Plus there's just the built-in benefit of getting Apple's business.

How could you see Apple's display and touch technology being improved?

Source: Reuters