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Apple (NASDAQ:AAPL) is heavily interested in the development of its custom chips for its products. The company is now buying a portion of the European chipmaker Dialog Semiconductor in an attempt to bring more development in-house. The deal is rather unorthodox as it includes $300 million for licensing Dialog Semiconductor's power management technologies, acquiring 300 skilled engineers and the control of some assets. So let's see some more details on the acquisition.
Apple (NASDAQ:AAPL) Buys Portion Of European Chipmaker Dialog Semiconductor For $300 Million
Apart from the said points in the deal, a further $300 million will be committed for Dialog's products over a span of three years. According to TechCrunch, Apple's acquisition of Dialog Semiconductor is the biggest in headcount. The 300 engineers part of the deal makes 16 percent of the total workforce of Dialog. In addition to this, these engineers have experience in the field of making Apple (NASDAQ:AAPL) chips for years.
“Dialog has deep expertise in chip development, and we are thrilled to have this talented group of engineers who’ve long supported our products now working directly for Apple,” said Srouji, in a statement. “Our relationship with Dialog goes all the way back to the early iPhones, and we look forward to continuing this long-standing relationship with them.”
It was reported last year by Nikkei that Apple (NASDAQ:AAPL) was in the works to design its own custom power management chips. This year, Dialog Semiconductor stated that Apple (NASDAQ:AAPL) has decreased the number of its orders. This is due to the fact that Apple could have moved away from Dialog chips in place of its own design in the latest iPhone XS and iPhone XS Max.
Possibly, the 300 engineers from Dialog Semiconductor will bring in their former company's research and development mix to Apple (NASDAQ:AAPL). The impacts of the acquisition are yet to be seen. There will be more to the story, so be sure to stay tuned in for more details on the matter.
This is all for now, folks. What are your thoughts on the matter? Let us know in the comments section below.