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Renesas saddled with $10bn in goodwill after acquiring Dialog

Investors skittish about Japanese chipmaker shares despite booming demand

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.

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.

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