SiTime’s technology could potentially be used in billions of chips from Renesas, according to SiTime’s CEO. After announcing a deal to acquire timing assets from Renesas worth up to $3.2 billion, SiTime’s shares closed up 17.9%, with expected revenue from the assets to double in the first year.

The deal also includes Renesas CEO joining SiTime’s board and integrating SiTime’s timing technology into Renesas chips. SiTime’s resonator technology is smaller and more resistant to temperature changes, making it ideal for automotive chips, a key market for Renesas.

SiTime CEO mentioned that the resulting chips will be the first microcontrollers on the market that do not require external timing components, though it may take a couple of years before revenue is generated. The potential integration is expected to be in billions of units, marking a significant advancement in chip technology.

Read more at Yahoo Finance: SiTime tech could go into billions of Renesas chips, SiTime CEO says