$16.3 billion– a 16% premium– for driverless computer chips

Via Reuters:

Japan’s Renesas Electronics Corp has agreed to buy Integrated Device Technology Inc for $6.7 billion, as it deepens its push into semiconductors for self-driving cars. Renesas has been keen to get its hands on IDT’s know-how in analog semiconductors for wireless networks and sensors — expertise crucial to develop autonomous driving and connected car technology.

Flowing into the race to master driverless technology is the race to make the computer chips that power driverless technology. Though Nvidia has a big lead, that race is far from over. New entrants are investing billions towards chip development. These includes Tesla, which recently announced their cars would be made with chips they developed in house. Given the billions being paid to buy driverless computer chip technology, Tesla’s decision may prove wise.

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