SiTime said it has reached an agreement to acquire timing assets from Renesas in a transaction that the company values at up to $3.2 billion. The arrangement also includes a strategic integration pact under which Renesas will incorporate some of SiTime's timing technology into its chips, and Renesas CEO Hidetoshi Shibata will join SiTime's board of directors.
Shares in SiTime rose sharply on the announcement, closing up 17.9% on the first day of trading following the deal disclosure.
SiTime expects the Renesas timing assets to produce roughly $300 million in revenue in the first year following the transaction's anticipated close by the end of 2026. If realized, that initial revenue contribution would be nearly equal to the company’s prior fiscal 2025 sales of $326.7 million, effectively almost doubling SiTime's reported revenues from that period.
The core technology Renesas will adopt from SiTime is described as a resonator. The resonator is smaller than competing timing technologies and is more resistant to temperature swings, properties that make it suitable for automotive applications. Automotive chips are a key market for Renesas’ microcontrollers, and the integration agreement targets those product lines.
SiTime's chief executive, Rajesh Vashist, said the integration could produce microcontrollers that no longer require external timing components. He cautioned that the commercial impact will take time because of design, qualification and production cycles:
"It’ll probably be a little while before it shows up in revenue for us, let’s say at least a couple of years, because designing it in, qualifying it, getting it out, selling it, takes time,"Vashist said. He added optimistic volume prospects:
"I think this could turn out to be billions of units that will be integrated in this way."
The deal ties together an asset acquisition, a board-level personnel change, and a product integration commitment from Renesas. SiTime’s forecast for first-year revenue from the Renesas assets and the near-term stock-market response underscore the financial and strategic importance management places on the transaction.
The timeline outlined by SiTime targets a close by the end of 2026, with an initial revenue estimate of $300 million for the first year after closing. Management has flagged that the timeline for recognition of additional revenue tied to chip integrations will likely stretch into the next several years as design-in and qualification processes run their course.