Japan's Renesas takes over Apple supplier Dialog Semiconductor in $6B deal
Dialog Semiconductor, a UK-based chip producer who is also a supplier to Apple, is being taken over by Renesas Electronics in a deal valued at $6 billion.
Dialog Semiconductor, a UK-based chip producer who is also a supplier to Apple, is being taken over by Renesas Electronics in a deal valued at $6 billion.
The CEO of Apple power chip supplier Dialog Semiconductor sounded a positive note on the Chinese smartphone market on Thursday, though whether or not Apple will benefit remains to be seen.
Dialog Semiconductor is anticipating a drop in revenues for 2019, in part due to the completion of a $600 million deal with Apple, but at the same time the rest of the chip design firm's business is expected to show growth, a claim that investors seem to be happy about.
Suffering relatively little fallout from Apple's disappointing iPhone sales, Dialog Semiconductor said on Monday that it expects to hit the low end of revenue guidance for the December quarter.
Power management tech supplier Dialog Semiconductor hasn't seen the same hit to its business that other Apple suppliers have encountered in recent times, CEO Jalal Bagherli claimed on Wednesday.
Apple is investing a total of $600 million to license patents, purchase assets and transfer employees from Dialog Semiconductor, a European chipmaker and existing business partner that entered Apple's supply chain with the first iPhones a decade ago.
The supplier responsible for the battery-saving power management chips inside Apple's iPhone has seen its shares bleed more than half their value in 2018 amid multiple reports that Apple is moving in its own direction.
The CEO of Dialog Semiconductor continued trying to assuage the concerns of investors this week, suggesting not only that the company has Apple contracts through 2020, but that it could have work on unannounced products beyond the iPhone, iPad, and Apple Watch.
Apple will continue to be a major customer of Dialog Semiconductor, the chip manufacturer's chief executive has claimed in an interview, insisting Dialog will continue supplying components for use in a number of Apple products until 2020, despite rumors that the iPhone producer may change how it sources some of its power management hardware.
Power management chip supplier Dialog Semiconductor on Monday reinforced rumors that Apple could design its own such chips in the future, while implying they may still a few years out.
Apple may be seeking to further control components associated with the iPhone and iPad, and could be bypassing Dialog Semiconductor with efforts to develop power management systems for its devices.
As Apple continues its market expansion, it appears to be on the cusp of developing its own microprocessors as solutions to cost management and supplier constraints — and the subsequent fabricator abandonment that occurs as a result has profound repercussions those left behind.
Apple is likely developing custom power management chips, working on the technology at facilities in Germany and the U.S., an analyst said on Tuesday.
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