Apple (AAPL) Looks To Buy Chipmaker Renesas SP Drivers: Report

NEW YORK (TheStreet) -- Apple (AAPL) is reportedly in discussions with Renesas (RNECF) to buy the company's 55% stake in Renesas SP Drivers according to Nikkei.

Shares of Apple gained 0.9% to $541.65 Tuesday.

Renesas SP Drivers supplies chips for displays in the iPhone and other smartphones. Apple will reportedly use the company's expertise to "improve image sharpness and battery life" in future iPhones and other iOS devices. The move would also give Apple direct control over development of the chips.

Renesas SP is a joint venture with Renesas, Sharp (SHCAY), and Powerchip. Sharp owns 25% of the computer, while Powerchip own 20%. Sharp is expected to sell its stake if Apple acquires Renasas' stake.

Apple's potential deal could be good news for Himax (HIMX) and MagnaChip (MX) as Renesas SP customers look for alternative suppliers.

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TheStreet Ratings team rates APPLE INC as a Buy with a ratings score of B+. TheStreet Ratings Team has this to say about their recommendation:

"We rate APPLE INC (AAPL) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance, expanding profit margins and growth in earnings per share. We feel these strengths outweigh the fact that the company has had sub par growth in net income."

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