February 6, 2026 /SemiMedia/ — U.S.-based SiTime said it will acquire Renesas Electronics’ timing business in a cash-and-stock deal valued at about $2.9 billion, marking the largest acquisition in SiTime’s history as it deepens its push into AI data center and infrastructure markets.

Under the agreement, SiTime will pay $1.5 billion in cash and issue around 4.13 million shares to Renesas. The cash portion will be funded through a mix of SiTime’s own reserves and a fully committed $900 million loan from Wells Fargo. The deal is expected to close by the end of 2026, after which Renesas CEO Hidetoshi Shibata will join SiTime’s board.

The divested unit supplies clock products used for signal synchronization in wireless networks and high-speed systems, components that have become increasingly important as AI workloads drive demand for faster and more complex server architectures.

Santa Clara-based SiTime focuses on silicon oscillators and resonators, which help keep advanced circuits in sync inside large-scale data centers. Industry analysts say demand for precise timing solutions is rising as AI clusters grow and networking speeds move higher.

For Renesas, the sale supports a broader shift toward platform-based semiconductor offerings and higher-growth areas. The Japanese chipmaker, known for its automotive portfolio, has been reshaping its business in recent years, including the acquisition of U.S. design software firm Altium in 2024.

Analysts said the deal gives SiTime a broader product base in infrastructure and AI-related applications, while providing Renesas with additional capital for future investments and portfolio restructuring.