Synaptics Inc. has reached a deal to buy iPhone display chip maker Renesas after talks on a potential deal between Renesas and Apple fell through, Reuters reports. Synaptics is a former Apple supplier, but now provides parts for competitor Samsung’s flagship smartphones.
Analysts predict that Synaptics will integrate its own touchscreen technology with the display chips created by Renesas to cut manufacturing costs and create an all-in-one solution that is currently unrivaled in the market.
That could be good news for Apple, who will presumably continuing sourcing its iPhone display chips from Renesas after the deal is finalized. While it would likely have been a better deal for Apple to simply acquire Renesas and do everything in-house, Synaptics is now in a solid position to regain Cupertino’s business.
Synaptics has recently been toying with the technology to put a Touch ID-like sensor directly behind smartphone displays, eliminating the need for a dedicated sensor in the home button. Should the company manage to get back into business with Apple, that technology could eventually make its way into a future iPhone model.
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