Apple hires 300 engineer specialists from UK company
Apple has spent on 300 engineer experts from the UK. It is disbursing $300m (£227m) to Dialog Semiconductor for the deal. The acquisition comprises some of the Reading-based company’s patents and facilities. Apple has for a long time used products from the firm to monitor and control power consumption in its products such as iPhones and iPads. Regarding headcount, the deal is one of Apple’s most significant purchases.
Dialog is an expert in developing chips and the engineers will add value to the company while working directly under Apple. The said employees have interacted with Apple for several years, so they are aware of the requirements of the firm. The aforementioned employees will add more value to the productivity of Apple.
The employees involved are based in Swindon in the UK, Livorno in Italy, Nabern and Neuaubing in Germany. The Californian firm also designs its central processing units (CPUs) and the previous year it declared it was terminating its partnership with Imagination Technologies, another company based in the UK, to facilitate its own production of in-house graphics processing units.
In November 2017, there were reports that Apple was planning to stop using Dialog’s components. The reports affected the supplier’s shares and caused them to fall by 20%.
However, it seems all will be well because Apple has also announced it has made an advance payment to Dialog of $300m to secure products for three more years. An expert noted that Apple likes to take control.
Dialog said it anticipated the deal would be completed between January and June of 2019.
The chief executive of the firm told the BBC that he hoped his company’s relationship with Apple would go beyond 2021, but that the arrangement gave Dialog time to become less dependant on the US tech giant. From the two deals, the semiconductor developer will net in approximately $600 million in total.
One of the main means to keep power depletion of modern SoCs in check is by carefully controlling their power supply with advanced power management ICs. It has been known that Apple has been purchasing third-party power management ICs even those from Dialog. However, it seems like the company intends to directly manufacture and incorporate at least some of this technology for upcoming products. Since 2008, the company has been investing in the development of its own semiconductors, slowly increasing its range of merchandises, IP portfolio, and engineering employees. Therefore, the inclusion of power management IP and developers is convenient for Apple’s approach of moving to in-house developed innovations.
The acquisition is in a bid to enable development of its own PMICs. Apple will also get four Dialog facilities and an IP license for certain power management technologies.
Samsung also produces its own displays for its smartphones. The benefits for Apple having full control at the component level should be lower overheads and hence lower expenses.
The only disadvantage could be if something goes wrong. Otherwise, both firms are looking forward to a profitable deal.