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Renesas to buy UK chip designer Dialog for $5.8bn

Japanese maker targets peer's 5G mobile communications technology

Renesas Electronics announced Monday that it will buy Dialog Semiconductor for 617.9 billion yen.

TOKYO -- Renesas Electronics of Japan announced Monday that it will acquire U.K. chip designer Dialog Semiconductor for 617.9 billion yen ($5.8 billion), after the two companies reached an agreement that Renesas will buy all shares of Dialog. 

Dialog has technologies for the 5G high-speed mobile communications standard. Against the backdrop of a changing business environment, including U.S.-China friction and a shortage of automotive-use semiconductor devices, Renesas, which sells mostly to automakers, aims to focus more on the 5G market, where it sees growth potential.

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