Apple is looking to improve the iPhone's display with latest acquisition

Samsung’s Galaxy S5 is releasing in just over a week and everything we’ve seen indicates that it will set the bar for smartphone displays in 2014. Apple knows that Samsung is giving it very tough competition in terms of display quality, which is why it’s reportedly looking to buy a Japanese chip manufacturer that will help it keep pace with Samsung over the next few years.

Apple is in talks with chipmaker Renesas Electronics over the potential acquisition of a unit that creates chips for smartphone displays, reports Japanese business site Nikkei. The chips, which are already used in the iPhone’s liquid crystal displays, improve both image sharpness and battery life.  Renesas SP Drivers, the division Apple is aiming to purchase, is a leading producer of drivers and controllers for small LCDs. The company is a joint venture between Renesas, Sharp, and Powerchip, with Apple offering 50 billion yen or $479 million for Renesas’ 55 percent stake in the company. Following the transaction, Sharp is also expected to sell its 25 percent of shares in Renesas SP to Apple, while Powerchip will retain 20 percent.

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