The European chipmaker Dialog Semiconductor on Thursday announced its massive $600-Million contract with Apple Inc. The deal is Apple’s effort to license some of Dialog’s power management technologies and acquire its certain assets, including 300 staff.
With this deal, the British firm also earned a number of new contracts from Apple, including the supply of power management, audio subsystem, charging, and mixed-signal integrated circuits.
Shares of Dialog jumped as much as 34% in trading on Thursday – highest since 2000. Dialog is Apple’s major supplier of chips that handle charging and manage power in mobile phones. For years, about three-quarters of Dialog’s revenue came from Apple.
“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,” says Johny Srouji, Senior VP of Hardware Technologies at Apple. “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.”
Earlier this year, it was reported that Apple was planning to design its own power management chips just like the way it began developing its own graphics, Bluetooth, and other phone-related chips recently. This acquihire – when it comes to headcount –is Apple’s biggest acquisition ever that will bring Dialog’s R&D and about 16 percent of its total workforce, under Apple’s umbrella.