With the forthcoming launch of electric cars, the demand for video processing chips and IoT enabled chips is likely to surge.

On Monday, U.S. hedge fund Elliott Management Corp disclosed that it has acquired a shade of 5% stake in Hitachi Kokusai Electric, a chip manufacturer for equipment and video solution business.

Earlier in April, KKR & Co LP,a buyout firm, had agreed to purchase Hitachi Kokusai from Hitachi Ltd, in a deal which valued the business at nearly $2.3 billion. However, the deal was put on hold following a third-party committee’s report to the Hitachi Kokusai board, after which it withdrew its support for the deal.

“We are encouraged by the company’s recent business success and the board’s efforts to safeguard shareholders’ interests through the establishment of the third-party committee,” said Elliott in a statement.

With the news reaching the market, Hitachi Kokusai shares were up by 3.6% in afternoon trade, while Hitachi shares rose by 1.4%.