Dialog says not losing Apple power chip business in 2018

Dialog says not losing Apple power chip business in 2018

Dialog says not losing Apple power chip business in 2018

According to a regulatory filing on Tuesday, a subsidiary of Chinese chipmaker Tsinghua Unigroup Ltd increased its stake to 7.15 percent on November 30, the day Dialog shares fell by 20 percent on a report that Apple may design its own power-management chips.

China's top state silicon chipmaker has indirectly raised its stake in Dialog Semiconductor (DE:), whose share price has plummeted on signs it could lose its top customer Apple Inc (O:).

The analyst furthers suggest that Dialog would maintain a relationship with Apple, but would no longer be the "single source" for power management chips.

The company has previously tried to play down those concerns. The company is believed to derive the majority of its income from Apple. Monday was the first time it has publicly acknowledged Apple could eventually replace its chips with in-house production.

"Although Dialog expects to remain Apple's main supplier of power management integrated circuit (PMIC) designs, Dialog recognizes Apple has the resources and capability to internally design a PMIC and could potentially do so in the next few years", it said.

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The stock has lost half its value since April on investor concern that Apple is working to build its own power chips, reports Reuters.

Bagherli said the feedback from Apple thus far relative to his product plans for 2019 has been very good and he expected much more clarity on the issue by March relative to terms of the new business for 2019 with Apple.

Tsinghua Unigroup, which bought Spreadtrum in 2013, has said it wants to float the company next year.

Imagination has since been sold to China-backed Canyon Bridge Capital Partners for £550 million ($740 million), well below the £2 billion ($2.7 billion) it was worth at its peak in 2012.

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