SiTime, a pure-play precision timing company focused on MEMS-based programmable timing solutions, announced it has signed a definitive agreement to acquire certain assets related to Renesas’ timing business in a deal designed to materially expand its clocking portfolio and deepen its exposure to high-growth AI datacenter and communications markets.
The acquired timing business is expected to generate about $300 million of revenue in the 12 months after closing, with roughly 70% gross margin, and about three-quarters of that revenue tied to the AI-Datacenter-Comms segment, SiTime said. SiTime added that the remaining revenue is expected to come from industrial and automotive end markets. The company framed the acquisition as a step toward its longer-term goal of reaching $1 billion in revenue, while strengthening its product breadth across higher-performance timing categories beyond oscillators.
Strategically, SiTime said the acquisition expands its reach into clocking products, including clock generators, buffers, network synchronizers, and jitter attenuators, complementing its existing MEMS oscillator portfolio. The company positioned the combined portfolio as better suited to demanding applications, including data center switches, SmartNICs, routers, and humanoid robots, where performance, reliability, and shorter design cycles are increasingly important. SiTime also highlighted the acquired business’ customer footprint of more than 10,000 customers and said the combined customer base would include major cloud hyperscalers, AI server vendors, and leading enterprise, networking, communications, automotive, and mobile-IoT-consumer players.
Alongside the transaction, SiTime and Renesas said they signed a partnership memorandum of understanding to explore integrating SiTime’s MEMS resonators into Renesas’ embedded computing products. SiTime described its Titan MEMS resonators as enabling a packaging approach in which a bare-die resonator can be combined with a Renesas MCU or SoC die in a single package, potentially reducing board-level complexity, saving space, and simplifying system design for applications spanning AI data centers, industrial automation and robotics, automotive ADAS, and wearables.
Financially, SiTime said the acquisition is expected to help it move toward the upper end of its 60%-65% gross margin target, while maintaining its targeted long-term annual revenue growth rate of 25%-30%. The company also said the deal is expected to be accretive to non-GAAP earnings per share in the first year after closing.
Under the terms of the asset purchase agreement, SiTime will pay $1.5 billion in cash and issue approximately 4.13 million shares of SiTime common stock, subject to a potential adjustment and a price collar tied to SiTime’s 10-day volume weighted average price. SiTime said it expects to fund the cash portion with cash on hand and $900 million in fully committed debt financing from Wells Fargo Bank, and to delever to less than 2x within 24 months after closing. The deal is expected to close by the end of 2026, subject to customary closing conditions and regulatory approvals, and is not subject to financing conditions. After closing, Renesas CEO Hidetoshi Shibata is expected to join SiTime’s board.
Support: Qatalyst Partners is serving as financial advisor to SiTime, with Cooley as legal counsel and Joele Frank as strategic communications advisor. Wells Fargo Bank, N.A. is providing the committed debt financing. J.P. Morgan is serving as financial advisor to Renesas, with Sidley Austin as legal counsel.
KEY QUOTES
“This acquisition is a monumental milestone toward fulfilling our vision to transform the timing market and solve our customers’ toughest timing challenges. With Renesas’ timing business, we will increase our clocking portfolio by more than 10x and extend our reach in the fastest growing applications in the timing market, including comms, enterprise and datacenter. Notably, these applications are expected to represent more than 60% of SiTime’s revenue, post-acquisition. We are confident that the acquisition will deliver exceptional value for our shareholders as we build on our strong record of financial performance as underscored by our 2025 results announced today.”
Rajesh Vashist, Chairman and CEO, SiTime
“One of SiTime’s strategies is to integrate our resonators into MCUs and power management ICs, among other SoCs, to provide size, performance and power benefits to semiconductor companies. We are excited about the additional value that could be created for customers and the start of this multi-year revenue opportunity for SiTime.”
Rajesh Vashist, CEO, SiTime
“This transaction allows Renesas to sharpen its focus on embedded compute leadership while ensuring our customers have access to SiTime’s cutting-edge MEMS timing technology. We look forward to exploring opportunities for strategic collaboration with SiTime to deliver integrated solutions that power the next generation of intelligent devices that demand performance and efficiency. This milestone is another step forward toward our 2035 Aspiration and becoming a top-three embedded semiconductor solution supplier. Throughout this process, we remain fully committed to supporting our employees, customers and partners and ensuring a smooth transition.”
Hidetoshi Shibata, CEO, Renesas
