The Japanese are investing heavily to dominate the chip market. Renesas buys Altium for almost $6 billion

by alex

The authorities are doing their best to facilitate this

Japanese semiconductor maker Renesas Electronics said it is buying Sydney-listed software company Altium for A$9.1 billion ($5.89 billion) in cash as the company seeks to streamline the electronics design process.

The Japanese chipmaker, which will finance the deal with bank loans and cash on hand, said the acquisition will allow it to better manage electronics design for customers, as Altium's core business is making printed circuit board design tools.

«Japan is serious about regaining global leadership and dominance in the global chip manufacturing ecosystem», — Jesper Koll, expert director at Monex Group, told CNBC, highlighting the huge reserves of untapped capital that Japanese firms have.

Coll said that «corporations have nearly $5 trillion in cash reserves/retained earnings on their balance sheets, coupled with de facto zero-interest financing from the government», which helps finance acquisitions and create a comprehensive chip ecosystem.

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«It is entirely reasonable to predict that by 2028-2030 Japan will own and operate one-third of the global chip manufacturing ecosystem, more than double its current share», & ;mdash; added Coll.

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