SiTime to Acquire Renesas' Timing Business in $3 Billion Deal
February 6, 2026
In a significant consolidation within the semiconductor sector, precision timing specialist SiTime Corporation has announced a definitive agreement to acquire the timing business of Japanese chipmaker Renesas Electronics Corporation. The all-cash and stock transaction, valued at approximately $3 billion, underscores the strategic importance of timing components in enabling next-generation data center, communications, and enterprise infrastructure. The boards of directors of both Silicon Valley-based SiTime and Tokyo-headquartered Renesas have unanimously approved the deal, which is anticipated to close by the end of 2026, pending customary regulatory approvals and closing conditions. The acquisition will see SiTime integrate Renesas' portfolio of clock generators, buffers, network synchronizers, and jitter attenuators, expanding its own clocking product offerings by more than tenfold. The combined business is projected to generate around $300 million in revenue within the first twelve months post-closure, substantially scaling SiTime's customer base and strengthening its financial profile. In a related move, the companies have also signed a memorandum of understanding to explore integrating SiTime's MEMS-based timing chips into Renesas' embedded computing platforms. SiTime's Chairman and CEO, Rajesh Vashist, framed the acquisition as a "monumental milestone" for the company. "We are confident that the acquisition will deliver exceptional value for our shareholders as we build on our strong record of financial performance," Vashist stated, noting that communications, enterprise, and data center applications are expected to represent over 60 percent of the company's revenue following the integration. For Renesas, the divestiture allows a sharper focus on its core embedded processing leadership. "This transaction allows Renesas to sharpen its focus on embedded compute leadership while ensuring our customers have access to SiTime's cutting-edge MEMS timing technology," said Renesas CEO Hidetoshi Shibata. The deal marks a major strategic expansion for SiTime, a company founded in 2025 that has grown through targeted acquisitions, including a $148 million purchase of clock products from Aura Semiconductor in late 2023. For Renesas, the move continues a pattern of portfolio optimization following several multi-billion dollar acquisitions in recent years aimed at building its embedded systems expertise. The transaction highlights the critical, yet often overlooked, role of precision timing solutions in synchronizing the high-performance computing, AI, and networking hardware that underpins modern digital infrastructure.
Source: datacenterdynamics
