Renesas saddled with $10bn in goodwill after acquiring Dialog

Investors skittish about Japanese chipmaker shares despite booming demand

20210216 Renesas

Investors are wondering if the Dialog acquisition makes sense, as indicated by Renesas shares falling 7% on Feb. 8 after news of the takeover broke.

TAKEHIRO HASEGAWA, Nikkei staff writer

TOKYO -- Renesas Electronics has made another big acquisition, one that has analysts questioning whether the move will pay off.

The Japanese chipmaker announced on Feb. 8 that it will buy U.K. chip designer Dialog Semiconductor for 617.9 billion yen ($5.86 billion) in its third strategic purchase after two major acquisitions in 2017 and 2019, which cost the company about 1 trillion yen.

Sponsored Content

About Sponsored ContentThis content was commissioned by Nikkei's Global Business Bureau.