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Apple to Design its Own Power Management Chips

Accepted submission by takyon at 2017-11-30 18:04:26
Hardware

+mobile
+techonomics

Apple will reportedly design its own power management chips [nikkei.com] (archive [archive.fo]) for new iPhones within 1-2 years. The news sent shares of Dialog Semiconductor plummeting:

Apple's long-term plans to cut dependence on suppliers to boost its semiconductor capabilities have been widely-flagged as it consolidates its production chain to better compete with its rivals. But these plans may have claimed a victim, with Dialog shares down 19.16% soon after these exclusive plans were revealed on Nikkei Asian Review. They were down 17.58% at 13:59GMT.

The main power management chip controls an iPhone's charging function, battery management, and energy consumption. "Based on Apple's current plan, they are set to replace partially, or around half of its power management chips to go into iPhones by itself starting next year," said the source. Another person said Apple was indeed developing its own power management chips for iPhones but the time frame was less certain and could be delayed to 2019.

Apple's main power management chips for the iPhone, iPad and Apple Watch are now exclusively designed and made by Dialog, according to Credit Suisse. Apple accounted for 74% of Dialog's revenue in 2016. Power management chips are one of the most crucial and expensive components after core processors, modems and memory chips.

Also at Bloomberg [bloomberg.com] and The Verge [theverge.com].


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