Synaptics, Incorporated (NASDAQ:SYNA) President and CEO Rick Bergman discussed the effects of its acquisition of Renesas SP Drivers Inc., particularly in relation to Apple Inc. (NASDAQ:AAPL), in an interview with CNBC’s Fast Money.
The interview comes after the company agreed to buy Renesas SP for $475 million. Renesas SP, a joint venture established by Renesas Electronics, Sharp Corporation and Powerchip Group in April 2008, is the sole supplier of Apple Inc. (NASDAQ:AAPL) iPhone display chips.
The executive was asked by Melissa Lee about the effects of their goal to make a single chip that integrates Synaptics, Incorporated (NASDAQ:SYNA) technology and Renesas SP technology in terms of weight and cost of component. The CEO said that as part of the company’s broader display integration strategy, the new chip will pave the way for a clearer, lighter and thinner phone. In terms of costs, Bergman said that Apple Inc. (NASDAQ:AAPL) will not be the only party who will benefit from a chip such as this because as Synaptics reduces an inherent cost in making display chips, every company involved will benefit.
The Synaptics, Incorporated (NASDAQ:SYNA) was then asked whether the acquisition will make them an Apple Inc. (NASDAQ:AAPL) supplier again. Synaptics supplied the technology for the touch wheel of the iPod eight years ago. According to the CEO, the company would have to earn their spot as a supplier to any company, including Apple.
Asked about the company’s revised revenue guidance which featured better figures, the Synaptics, Incorporated (NASDAQ:SYNA) CEO said that it only included figures for their business for the current quarter not including a possible relationship with the iPhone-maker.
Watch the video below where the CEO also talked about Samsung and why the company decided to acquire Renesas SP.
Synaptics, Incorporated (NASDAQ:SYNA) shareholders includes Robert B. Gillam’s Mckinley Capital Management which reported a 462,690-share stake in the company at the end of the first quarter of the year. Another shareholder is Chuck Royce’s Royce & Associates which had 307,107 shares in the company also at the end of March.
Meanwhile, investors in Apple Inc. (NASDAQ:AAPL) includes Jeffrey Tannenbaum’s Fir Tree which had 152,490 shares by the end of March. Panayotis Takis Sparaggis’ Alkeon Capital Management also had 148,041 shares in the iPhone-maker by the end of the first quarter of 2014.