Apple to invest $600 Million in European chipmaker Dialog Semiconductor

Dialog Semiconductor

Dialog Semiconductor, Europe-based chipmaker has signed a deal of $600 with Apple. After growing huge interest in Dialog’s power-management technology, the iPhone manufacturer had offered $300 million for it. Apple has also put forward an additional $300 for Dialog Semiconductor certain assets including over 300 staff. According to news reports, this is one of the Apple’s largest investment in an outside company.

News of the latest deal between Dialog Semiconductor and Apple has caused shares of the former company to leap by 34% in trading in Frankfurt and acquired top of the index. Both the companies have been working collaboratively from past many years and product-management chips have been an important feature of iPhones. After the deal, 16% of the Dialog’s workforce will be transferred to Apple while the company further acquires facilities in the UK, Italy, and Germany.

According to Dialog, the employees who are being transferred to Apple have worked closely with the company for several years and the transition will foster their collaboration. The chipmaker company has also acquired wide range of contracts from Apple for supply and development of power management, charging, audio subsystem, and other integrated circuits.

The semiconductor company relies about three-quarters of its revenue on Apple, typically through the supply of chips that manages power and handle charging in smartphones. Dialog Chief Executive Officer Jalal Bagherli said that the deal will scale down the reliance to around 45% in the coming years. The revenue from the contract is expected to be materialized in 2019 and will be accelerated over the following years, he added.

Going forward from the acquisition, Dialog intends to focus on automotive and Industrial projects, and most importantly on ‘Internet of Things’. The Dialog CEO said that the company has a clear strategy focus to reduced Apple-derived revenue to about 40% by 2022. He also added that the company’ deep customer relation, execution track record, and talented employees give great confidence in future growth prospects.

On transition of employees, Johny Srouji, Apple’s senior VP of Hardware Technologies said in a statement that the company is thrilled to have group of skilled engineers who have long supported their products now working directly for Apple. Apple’s relationship with Dialog goes all the way back to early iPhones and both the companies look forward to continue the long-standing relationship.

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Rohit Bhisey

Rohit Bhisey

Holding a vast experience in a number of fields associated with market research and Internet marketing, Rohit strives to gain a better understanding of global as well as regional trends in a number of industries and analyzing their impact on a plethora of markets at several levels. His scrupulous attention to details and high understanding of how socio-economic factors impact how markets develop can be seen in his analytical write-ups presented on Fact.MR.

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