NEW YORK (Reuters) -Renesas Electronics Corp. ( RNECF ) is exploring a sale of its timing division in a deal that could value the business at close to $2 billion, according to people familiar with the matter.

The Japanese semiconductor manufacturer is working with investment bankers at JPMorgan ( JPM ) on the potential divestment, which is in its early stages, the sources said.

The process is expected to draw interest from other major chipmakers, including U.S.-based Texas Instruments ( TXN ) and Germany's Infineon, the sources added, requesting anonymity to discuss confidential information.

Renesas and JPMorgan ( JPM ) declined to comment. Texas Instruments ( TXN ) and Infineon didn't immediately return requests for comment.

The division develops and supplies specialized integrated circuits that manage clock, timing and synchronization functions. These components are critical for ensuring the orderly flow of data in high-speed networking equipment.

Key markets for the unit include data centers, where its products support communication between servers, as well as telecommunications infrastructure and the build-out of 5G mobile networks.

The potential sale comes as demand for components that power data centers and high-speed communications networks has surged, driven by the growth of artificial intelligence and 5G technology.

A divestment would allow Renesas to raise significant capital and potentially sharpen its focus on its core markets, such as automotive and industrial chips, while a buyer would acquire a valuable asset in a high-growth segment of the semiconductor industry.

Renesas is one of the world's largest suppliers of microcontrollers and a chip supplier to the automotive industry.

The company has grown through a series of acquisitions in recent years to broaden its portfolio of analog and power management chips.

The potential divestment of the timing business reflects a broader trend in the highly competitive semiconductor industry, where companies frequently review their portfolios to shed non-core assets and double down on areas of strategic priority.

Timing and clock ICs are fundamental components in virtually all advanced digital electronics. They act as a metronome for electronic systems, generating precise signals to ensure that data is processed and transmitted in a synchronized manner, preventing errors in complex, high-speed applications.

(Reported by Milana Vinn; Editing by Dawn Kopecki and Mark Porter)