October 11, 2018

TOKYO, Japan ― As announced in the press release “Regarding Acquisition of Stock of Integrated Device Technology, Inc.” issued on September 11, 2018, Renesas Electronics Corporation (“Renesas”, TSE: 6723), a premier supplier of advanced semiconductor solutions, resolved at the Meeting of Board of Directors held on September 11, 2018 to reach an agreement with Integrated Device Technology, Inc (“IDT”, NASDAQ: IDTI), whereby IDT will become a wholly-owned subsidiary of Renesas and has thus concluded a merger agreement with IDT.

In accordance with the merger agreement, Renesas expects to acquire all the shares in IDT at a price of US$6.7 billion (approximately ¥733.0 billion at an exchange rate of 110 yen to the dollar) through a merger of IDT with Renesas’ wholly-owned subsidiary registered for the purpose of the acquisition in Delaware, United States (an inverted triangle merger). To finance a portion of the funds necessary for the acquisition of IDT, Renesas today entered into a term loan agreement as described below.

1. Overview of the term loan agreement

(1) Borrowing limit: 728 billion yen

(2) Execution date of agreement: October 11, 2018

(3) Period of loan execution: From four business days prior to the execution date of acquisition (Note) until December 11, 2019.

(4) Repayment date: The day after 12 months from the initial execution of the loan.

(5) Participating financial institutions: MUFG Bank, Ltd., Mizuho Bank, Ltd.

(Note) Following approval by IDT shareholders and the relevant regulatory authorities, the acquisition is expected to be completed within the first half of the fiscal year ending December 31, 2019.

2. Future expectations

While the influence of the transaction on Renesas business performance has not yet been determined at present, Renesas will make an announcement in a timely manner once any material impact is made to its business performance. Renesas expects to convert the funds that will be acquired through the execution of this term loan agreement to long term capital.

About Renesas Electronics Corporation

Renesas Electronics Corporation (TSE: 6723) delivers trusted embedded design innovation with complete semiconductor solutions that enable billions of connected, intelligent devices to enhance the way people work and live. A global leader in microcontrollers, analog, power, and SoC products, Renesas provides comprehensive solutions for a broad range of automotive, industrial, infrastructure, and IoT applications that help shape a limitless future. Learn more at renesas.com. Follow us on LinkedIn, Facebook, Twitter, and YouTube.

The content in the press release, including, but not limited to, product prices and specifications, is based on the information as of the date indicated on the document, but may be subject to change without prior notice.

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