Apple Signs $600 Million PMIC Licensing Deal With Dialog Semiconductor

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The Apple Dialog deal will require Dialog to shift 16 per cent of its workforce as Apple employees. Apple will also take over certain Dialog facilities in U.K., Germany and Italy

Apple in a move to strengthen its efforts on building faster chips, has signed a $600 million deal with England based Dialog. The Apple Dialog deal will require Dialog to give Apple licensing to some of its power management integrated circuits (PMICs). Dialog Semiconductor will also be required to transfer over 300 employees and some assets to support Apple’s chip research and development.

Johny Srouji, Apple’s senior vice president of hardware technologies said, “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. 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.”

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This $600 million deal is being touted as the Apple’s biggest in terms of people and will require the company to pay $300 million in cash. The rest $300 million dollars of the Apple Dialog deal will be paid over to the latter in the next three years.

Apple has put no restrictions on Dialog as the chip development company will continue delivering PMICs to customers globally. Dialog Semiconductors also announced that it has signed new contracts for developing and supplying power management, audio subsystem, charging and other mixed-signal integrated circuits with Apple. Dialog believes that the revenue from new Apple contracts will start realising in 2019.

Jalal Bagherli, CEO, Dialog, said in a statement, “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.”

Apple as a part of the Apple Dialog deal will take over certain Dialog facilities in Swindon (U.K.), Livorno (Italy) and Nabern and Neuaubing (Germany).

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