Dialog Semiconductor anticipates that Apple will use its chips for a significant proportion of its devices at least till 2020, CE Jalal Bagherli has told a German newspaper.
“Apple at the start of the year commissioned us with the design of chips for many devices for 2019 and 2020,” said Bagherli.
According to some reports, the tech giant is the UK-based manufacturer’s biggest customer. But Dialog’s shares have slipped over the past year, losing half its value, as investors became concerned that Apple would create its own chips.
Analysts believe Dialog derives more than half its revenue from supplying Apple with power management integrated circuits.
Previously Dialog had acknowledged that Apple could develop its own power chips. It had said at the time there was no risk to its supply deals in 2018 and that it was in the advanced stages of working with Apple on designing “2019-type products”, which could lead to commercial contracts.
In addition, Bagherli also noted, “Negotiations over that chip are still ongoing. But we expect to deliver a chip design for testing in the customer’s system in the second half of the year,”
He also said that he saw no need for Dialog to develop a defence against possible hostile takeover attempts following the drop in its market value