SiTime Corporation has confirmed that it is in advanced discussions to acquire certain assets of Renesas Electronics’ timing business. The proposed transaction would accelerate SiTime’s trajectory toward $1 billion in annual revenue by adding approximately $300 million in incremental sales in the first 12 months post-close. Renesas’ timing business, which serves over 10,000 customers and has delivered sustained gross margins of roughly 70%, generates three-quarters of its revenue from high-growth AI, datacenter and communications end markets. The agreement includes a $1.5 billion cash payment and issuance of approximately 4.13 million new SiTime shares, subject to customary adjustments.

For the quarter ended December 31, 2025, SiTime reported non-GAAP earnings per diluted share of $1.53, up from $0.48 a year earlier, driven by a 66% year-over-year increase in net revenue to $113.3 million. Non-GAAP gross margin expanded to 61.2% from 52.7% in Q4 2024, while non-GAAP operating expenses decreased 8% sequentially to $35.5 million. Full year 2025 net revenue rose 61% to $326.7 million, and non-GAAP net income reached $82.6 million versus a loss of $18.1 million in 2024. Cash, cash equivalents and short-term investments totaled $808.4 million as of year-end.

SiTime expects the Renesas acquisition to be accretive to non-GAAP EPS in the first full year after closing and to drive gross margin toward the upper end of its long-term target range of 60–65%. The combined portfolio will expand SiTime’s addressable market by more than tenfold in clock generators, buffers, network synchronizers and jitter attenuators. Management forecasts annual revenue growth of 25–30% post-acquisition, underpinned by broad-based demand across hyperscale cloud providers, AI server OEMs, enterprise networking vendors and automotive Tier 1s. The deal is expected to close by year-end 2026, subject to regulatory approvals and customary closing conditions.