SiTime CEO Vashist: "Acquisition of Renesas Business to Drive AI Expansion"
The Nekkei interviewed SiTime CEO and Chairman of the Board Rajesh Vashist. Read the translated article in its entirety below.
SiTime, a U.S. semiconductor design company, is acquiring the timing components business from Renesas Electronics — components that ensure the proper functioning of electronic circuits. We spoke with CEO Rajesh Vashist about how the company plans to leverage the AI semiconductor boom.
— Why did you decide to acquire the business from Renesas for $3 billion now?
"We are a company specializing in timing component design, and we saw this as complementary to our expansion in AI and autonomous driving. The business we are acquiring was originally developed under Integrated Device Technology (IDT), where it handled top-quality products, before Renesas acquired it in 2019."
— Your business performance has been expanding on the back of AI demand.
"We expect revenue in 2026 to grow 80% compared to 2025. This does not include the business being acquired from Renesas. Even so, the AI boom is sustaining this level of growth."
"In the first quarter of 2026, 66% of revenue comes from AI, with the remainder — approximately 15% from mobile and IoT, and 19% from industrial, automotive and defense-related segments. AI servers that require high-speed connectivity for large volumes of data demand low latency, making the quality of timing components critical. Technologies capable of addressing challenging conditions such as vibration and high temperatures at the system level are required. These components are also used in GPUs and CPUs."
— What kind of demand exists in defense and satellites?
"U.S. and Indian military capabilities are expanding, and there are signs of change in Europe, Japan and Korea as well. In the defense sector, for example, communication equipment and GPS systems for maritime drones require precision timing components."
"For satellites, each low earth orbit (LEO) satellite carries approximately $2,000 worth of timing components, with 7,000 to 10,000 satellites currently in operation. There is potential for this to reach 100,000 satellites in the future."
— How long will the current momentum in AI demand last?
"Silicon Valley has seen several technology booms in the past — the internet, smartphones — but today's AI boom is the most remarkable of all. Its scope and scale are vast, and the momentum in capital investment will likely continue for a decade. Moreover, AI will fundamentally transform many things, from farming in India to education in the United States."
— Megachips, a Japanese semiconductor design company, acquired SiTime in 2014 and held it for many years.
"In the 2010s, 50–60% of our revenue came from Japan, mostly from camera-related products. Japan's share is lower compared to the U.S., Europe and China at the moment, but we want to expand it going forward."
(Interviewed by Rei Nakafuji)
Check the original The Nikkei article here.