SiTime to Acquire Renesas Timing Assets in $1.5 Billion Deal, Expanding Portfolio and Accelerating Growth
SiTime Corporation, the precision timing specialist, has reached a definitive agreement to acquire certain assets related to the timing business of Renesas Electronics America Inc., a consolidated subsidiary of Renesas Electronics Corporation. The transaction, valued at $1.5 billion in cash plus stock, is designed to significantly expand SiTime’s product portfolio, customer reach, and revenue potential while positioning the company as the premier pure-play provider of precision timing solutions.
Alongside the acquisition, SiTime and Renesas have signed a partnership memorandum of understanding to explore the integration of SiTime’s MEMS resonator technology into Renesas’ embedded computing products. The collaboration could enable tighter integration of timing components into microcontrollers (MCUs), system-on-chips (SoCs), and power management ICs, opening new opportunities across fast-growing markets such as AI data centers, industrial automation, automotive advanced driver-assistance systems (ADAS), and wearable devices.
Strategic Expansion Toward $1 Billion Revenue
SiTime Chairman and CEO Rajesh Vashist described the transaction as a major step toward transforming the global timing market. By adding Renesas’ timing assets, the company expects to expand its clocking portfolio more than tenfold and strengthen its position in high-growth applications, including communications, enterprise infrastructure, and data centers. These segments are projected to account for more than 60% of SiTime’s revenue after the acquisition.
The acquired business brings a three-decade legacy in clocking technology, serving more than 10,000 customers worldwide. Approximately 75% of its revenue comes from AI, data center, and communications markets, with the remainder from industrial and automotive segments. The unit has historically delivered strong financial performance, including gross margins of about 70%. Within the first 12 months after closing, the acquired business is expected to generate approximately $300 million in revenue, supported by SiTime’s sales and go-to-market capabilities.
Complementary Technologies and New Integration Opportunities
The acquisition will add a range of clocking products to SiTime’s portfolio, including clock generators, buffers, network synchronizers, and jitter attenuators. These products complement SiTime’s existing MEMS oscillator technology and are expected to strengthen its ability to serve high-performance applications such as data center switches, routers, SmartNICs, and robotics systems.
SiTime’s Titan MEMS resonators enable a design approach in which the resonator die can be integrated directly with an MCU or SoC die in a single package. This eliminates the need for separate resonators on system boards, reducing space requirements, simplifying design, and improving power efficiency. Such integration could support next-generation solutions across AI infrastructure, industrial equipment, automotive systems, and consumer wearables.
Vashist noted that integrating resonators into semiconductor chips is a core strategy for the company, creating opportunities for multi-year revenue growth through deeper partnerships with chipmakers.
Customer Reach and Market Position
With the addition of Renesas’ timing business, SiTime’s customer base is expected to include the world’s leading cloud hyperscalers, major AI server manufacturers, enterprise networking vendors, automotive OEMs and Tier 1 suppliers, and top mobile, IoT, and consumer electronics companies. The acquired business’s long-standing customer relationships offer new opportunities to introduce SiTime’s MEMS oscillator technology across a broader range of applications.
The combined product portfolio is expected to position SiTime as a dedicated leader in high-performance, precision timing solutions, offering improved reliability, flexibility, and design simplification for customers facing increasingly short development cycles.
Financial Impact and Transaction Structure
The transaction is expected to accelerate SiTime’s path to $1 billion in annual revenue while supporting gross margins toward the upper end of its long-term target range of 60% to 65%. The company also anticipates maintaining its targeted annual revenue growth rate of 25% to 30%. The acquisition is projected to be accretive to non-GAAP earnings per share within the first year after closing.
Under the terms of the agreement, SiTime will pay $1.5 billion in cash and approximately 4.13 million shares of its common stock, subject to adjustments based on a 10-day volume-weighted average price prior to closing. The stock portion includes a price collar with a floor of $308.6686 and a ceiling of $417.6104 per share.
To finance the cash component, SiTime plans to use existing cash and $900 million in fully committed debt financing from Wells Fargo. The company expects strong cash flows following the transaction to reduce leverage to below two times within 24 months after closing. The deal is not subject to financing conditions.
Both companies’ boards of directors have unanimously approved the transaction, which is expected to close by the end of 2026, subject to regulatory approvals and customary closing conditions. After completion, Renesas CEO Hidetoshi Shibata will join SiTime’s board of directors.
Renesas Strategy and Future Collaboration
Renesas CEO Hidetoshi Shibata said the transaction allows the company to sharpen its focus on embedded computing while ensuring its customers continue to benefit from advanced timing technologies through SiTime. He noted that the partnership with SiTime could lead to integrated solutions for next-generation intelligent devices, aligning with Renesas’ long-term goal of becoming a top-three embedded semiconductor supplier by 2035.
Advisors and Next Steps
Qatalyst Partners is serving as financial advisor to SiTime, with Cooley LLP as legal counsel and Joele Frank as strategic communications advisor. Wells Fargo is providing the committed debt financing. Renesas is advised by J.P. Morgan and Sidley Austin LLP.
SiTime also announced its fourth-quarter and full-year 2025 financial results and scheduled a conference call to discuss both the acquisition and its outlook for the first quarter of 2026. A presentation related to the transaction is available on the company’s investor relations website, where a live and archived webcast of the conference call will be accessible.
bout SiTime
SiTime is the Precision Timing company. Our semiconductor MEMS programmable solutions offer a rich feature set that enables customers to differentiate their products with higher performance, smaller size, lower power, and better reliability. With more than 4 billion devices shipped, SiTime is changing the timing industry. For more information, visit http://www.sitime.com.
About Precision Timing – Timing is the heartbeat of all electronics, ensuring performance, resilience and scalability. For decades, quartz devices, non-silicon technology, have kept systems in sync, but they struggle in harsher, more demanding environments. MEMS-based Precision Timing delivers greater accuracy, smaller size and resilience. Today, MEMS timing powers over 400 applications, including high-growth ones in AI datacenters, automated driving, industrial and humanoid robots, wearables and IoT.
About Renesas Electronics Corporation
Renesas Electronics Corporation (TSE: 6723) empowers a safer, smarter and more sustainable future where technology helps make our lives easier. A leading global provider of microcontrollers, Renesas combines our expertise in embedded processing, analog, power and connectivity to deliver complete semiconductor solutions. These Winning Combinations accelerate time to market for automotive, industrial, infrastructure and IoT applications, enabling billions of connected, intelligent devices that enhance the way people work and live.
