Apple has quietly been putting considerable effort into building faster and more efficient chips that can help differentiate its hardware from the rest of the consumer electronics pack, and today it’s taking its next (and possibly biggest) step in that strategy: the company is paying $300 million in cash to purchase a portion of Dialog Semiconductor, a chipmaker based out of Europe that it has been working with since the first iPhone. On top of the cash purchase, Apple is also committing $300 million in further purchases from the remaining part of Dialog’s business.
This will be Apple’s biggest acquisition in terms of people: 300 people will be joining Apple as part of the deal. They will be based across Livorno in Italy, Swindon in England, and Nabern and Neuaubing in Germany. They will report to Apple’s SVP of hardware technologies, Johny Srouji.
The deal is expected to close in the first half of 2019, pending regulatory approvals.
The deal comes at a time when many expect Apple to release a VR headset in the future, and while our sources haven’t told us specifically about this, what we do know is that one big, more general focus for the company is continue working on power management and chips that are more efficient in that regard, particularly considering the newest devices that Apple has added to its range: wireless Airpod headphones and the Watch.
“This transaction reaffirms our long-standing relationship with Apple, and demonstrates the value of the strong business and technologies we have built at Dialog,” said Jalal Bagherli, CEO of Dialog, in a statement. “Going forward, we will have a clear strategic focus, building on our custom and configurable mixed-signal IC expertise and world-class power-efficient design. Our execution track record, deep customer relationships, and talented employees give us great confidence in our future growth prospects… We believe that this transaction is in the best interests of our employees and shareholders who will benefit from a business with enhanced focus, strong growth prospects and additional financial flexibility to invest in strategic growth initiatives.”
More to come.