Renesas’ Processors Combined with Reality AI’s Tools and Solutions Deliver Seamless Endpoint AI to IIoT, Consumer and Automotive Applications

Renesas Electronics Corporation (TSE:6723), a premier supplier of advanced semiconductor solutions, today announced it has entered into a definitive agreement with Reality Analytics, Inc. (Reality AI), a leading provider of embedded AI solutions, under which Renesas will acquire Reality AI in an all-cash transaction. The transaction has been unanimously approved by the boards of directors of both companies and is expected to close by the end of calendar year 2022, subject to shareholders’ and required regulatory approval and other customary closing conditions. The acquisition will significantly enhance Renesas’ endpoint AI capability, providing more flexibility and efficiency for system developers to make their products AIoT (Artificial Intelligence of Things) ready and get to market faster.

The importance of embedding AI into products has soared lately in the connected world as workload requirements at the endpoint have evolved. For IIoT (Industrial IoT), consumer, automotive and other embedded applications that demand machine learning based intelligent decision-making physically closer to the source of the data, low latency and high security are a must. In collaboration with its partners, Renesas has been offering development environments and software that allow AI to be embedded in its low-power, highly secure MCUs (microcontrollers) and MPUs (microprocessors). The Reality AI acquisition allows Renesas to expand its in-house capability to provide comprehensive and highly optimized endpoint solutions both from the hardware as well as the software perspective. This enables system developers to realize endpoint intelligence across a wide range of IIoT, consumer and automotive applications.

Headquartered in Columbia, Maryland, U.S., Reality AI offers a wide range of embedded AI and Tiny Machine Learning (TinyML) solutions for advanced non-visual sensing in automotive, industrial and commercial products. They provide machine learning with advanced signal processing math, delivering fast, efficient machine learning inference that fits on the smallest MCUs. Reality AI’s flagship Reality AI Tools®, a software environment built to support the full product development lifecycle, provides analytics from non-visual sensor data. Their inference-based AI solutions can be implemented across various endpoint AI applications. Good examples of the company’s versatile expertise are industrial anomaly detection and automotive sound recognition using AI-built sensors.

Combining these technologies with Renesas’ broad range of MCU and MPU portfolios designed to provide the best-in-class AI inference and signal processing capabilities will help developers seamlessly apply advanced machine learning and signal processing to complex problems.

In addition to expanding embedded AI technologies, key IPs, software and tools, the acquisition will bring an AIoT center-of-excellence in Maryland by acquiring Reality AI’s experts. This move will extend Renesas’ global software development talent base and spearhead its commitment to address the needs of customers eager to utilize AI.

“The importance and demand of data at the endpoint is increasing at an unprecedented scale. The acquisition of AI technology is an important milestone to address our customers’ emerging requirements for endpoint intelligence,” said Hidetoshi Shibata, President and CEO of Renesas. “The addition of Reality AI’s AI solutions to our existing embedded AI portfolios will further solidify our position as a leading AIoT solution provider.”

“Customers are increasingly demanding highly customized solutions involving embedded machine learning, signal processing, high-capability processors, and assistance with hardware integration and solution development,” said Stuart Feffer, CEO of Reality AI. “Having collaborated with Renesas for some time now, we are looking forward to being able to provide customers with more complete solutions - especially in the areas of IIoT, consumer and automotive products where use of machine learning is growing rapidly.”

(Remarks) Reality AI Tools is a registered trademark of Reality AI. Other product or service names are the property of their respective owners.

About Renesas Electronics Corporation

Renesas Electronics Corporation (TSE: 6723) empowers a safer, smarter and more sustainable future where technology helps make our lives easier. A leading global provider of microcontrollers, Renesas combines our expertise in embedded processing, analog, power and connectivity to deliver complete semiconductor solutions. These Winning Combinations accelerate time to market for automotive, industrial, infrastructure and IoT applications, enabling billions of connected, intelligent devices that enhance the way people work and live. Learn more at renesas.com. Follow us on LinkedIn, Facebook, Twitter, YouTube, and Instagram.

Cautionary note regarding forward-looking statements

This announcement may contain certain statements that are, or may be deemed to be, forward-looking statements with respect to the financial condition, results of operations and business of Renesas and/or Reality AI and/or the combined group following completion of the Acquisition and certain plans and objectives of Renesas with respect thereto. These forward-looking statements can be identified by the fact that they do not relate to historical or current facts. Forward-looking statements also often use words such as ‘anticipate’, ‘target’, ‘continue’, ‘estimate’, ‘expect’, ‘‘forecast’, ‘intend’, ‘may’, ‘plan’, ‘goal’, ‘believe’, ‘hope’, ‘aims’, ‘continue’, ‘could’, ‘project’, ‘should’, ‘will’ or other words of similar meaning. These statements are based on assumptions and assessments made by Renesas and/or Reality AI (as applicable) in light of their experience and perception of historical trends, current conditions, future developments and other factors they believe appropriate. By their nature, forward-looking statements involve risk and uncertainty, because they relate to events and depend on circumstances that will occur in the future and the factors described in the context of such forward-looking statements in this announcement could cause actual results and developments to differ materially from those expressed in or implied by such forward-looking statements. Although it is believed that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to be correct and you are therefore cautioned not to place undue reliance on these forward-looking statements which speak only as at the date of this announcement.

Forward-looking statements are not guarantees of future performance. Such forward-looking statements involve known and unknown risks and uncertainties that could significantly affect expected results and are based on certain key assumptions. Many factors could cause actual results to differ materially from those projected or implied in any forward-looking statements. Due to such uncertainties and risks, readers are cautioned not to place undue reliance on such forward-looking statements, which speak only as of the date of this announcement. Neither Renesas nor Reality AI undertakes any obligation to update or revise any forward-looking statement as a result of new information, future events or otherwise, except as required by applicable law.

There are several factors which could cause actual results to differ materially from those expressed or implied in forward-looking statements. Among the factors that could cause actual results to differ materially from those described in the forward-looking statements are changes in the global, political, economic, business and competitive environments, market and regulatory forces, future exchange and interest rates, changes in tax rates and future business combinations or dispositions. If any one or more of these risks or uncertainties materializes or if any one or more of the assumptions prove incorrect, actual results may differ materially from those expected, estimated or projected. Such forward looking statements should therefore be construed in the light of such factors.

No member of the Renesas group or the Reality AI group nor any of their respective associates, directors, officers, employers or advisers, provides any representation, assurance or guarantee that the occurrence of the events expressed or implied in any forward-looking statements in this announcement will actually occur.

Except as expressly provided in this announcement, no forward-looking or other statements have been reviewed by the auditors of the Renesas group or the Reality AI group. All subsequent oral or written forward-looking statements attributable to any member of the Renesas group or the Reality AI group, or any of their respective associates, directors, officers, employers or advisers, are expressly qualified in their entirety by the cautionary statement above.

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