Apple to buy part of supplier Dialog in $600m deal

Customers in an Apple store at Grand Central Station in New York. (Reuters)
Updated 11 October 2018

Apple to buy part of supplier Dialog in $600m deal

  • Dialog’s shares rose by 34 percent in Frankfurt as the deal settles questions about future relations between Apple and Dialog
  • Since the first iPhones a decade ago, Apple has used Dialog power-management chips to manage their battery life

SAN FRANCISCO: Apple is to buy part of Dialog Semiconductor Plc’s business in a $600 million deal, expanding the iPhone maker’s chip operations in Europe and securing the German-listed company’s role as a supplier to the US tech group.
Dialog’s shares rose by 34 percent in Frankfurt early yesterday as the deal settles questions about future relations between Apple and Dialog, whose stock tumbled earlier this year when it said Apple planned to use chips from another supplier.
The acquisition is unusual for Apple, which rarely does such deals, and is larger than previous transactions. Apple bought Israel’s PrimeSense, creator of the facial recognition application used to unlock newer iPhones, for roughly $350 million in 2013.
Since the first iPhones a decade ago, Apple has used Dialog power-management chips to manage their battery life. Under the deal, Apple is buying patents, a team of about 300 engineers, most of whom already worked on chips for Apple devices, and Dialog offices in Britain, Italy and Germany.
Dialog said its 2018 revenue would not be affected and it would continue shipments of existing main power management integrated circuits (PMICs) to Apple. It expects to sell current and future generations of so-called sub-PMICs to Apple.
“We are not selling our PMIC business,” CEO Jalal Bagherli told analysts.
After the deal, Dialog expects Apple to account for 35-40 percent of its total revenues in 2022. That is down from around 75 percent in the current year. Headcount will fall to 1,800. The Anglo-German chipmaker also said it would begin a share buyback program for up to 10 percent of its stock following its next quarterly trading update.
Other chip designers in Europe have struggled to manage their relationship with Apple due to its sheer scale. Britain’s Imagination Technologies ended up being sold to a Chinese-backed fund last year after losing Apple as a client.
Shares in Austria’s AMS, which competes with Dialog in areas such as power-management chips, fell 3.8 percent.
Half of the deal’s value, or about $300 million, is cash for the Dialog engineers and offices and the other $300 million is pre-payment to Dialog for supplying chips over the next three years, the companies said. Dialog added that it would continue to deliver chips to other customers, focusing on the automotive and Internet-of-things markets, among others.
It forecast that its sub-PMIC business would achieve compound annual growth rates of 30-35 percent between 2018 and 2022. Its AMS, Connectivity and Automotive & Industrial business would grow at a 10-15 percent rate.
The deal represents an expansion of Apple’s chip design operations, which kicked into high gear in 2010 when the company released its first custom processor for the iPad and iPhone.


Arab News recording exposes Nissan lawyer’s lie on IMF bailout for Lebanon

Updated 01 June 2020

Arab News recording exposes Nissan lawyer’s lie on IMF bailout for Lebanon

LONDON: Arab News has published the recording of an interview with a Nissan lawyer after he denied saying that a bailout of Lebanon by the International Monetary Fund (IMF) was linked to the extradition of fugitive tycoon Carlos Ghosn.

The former Nissan chairman fled to Beirut in December from Japan, where he faced charges of financial wrongdoing.

In a story published in Arab News Japan on Saturday, Sakher El Hachem, Nissan’s legal representative in Lebanon, said the multibillion-dollar IMF bailout was contingent on Ghosn being handed back to Japan. 

The lawyer said IMF support for Lebanon required Japan’s agreement. Lebanese officials had told him: “Japan will assist Lebanon if Ghosn gets extradited,” the lawyer said

“For Japan to agree on that they want the Lebanese authorities to extradite Ghosn, otherwise they won’t provide Lebanon with financial assistance. Japan is one of the IMF’s major contributors … if Japan vetoes Lebanon then the IMF won’t give Lebanon money, except after deporting Ghosn.”

On Sunday, El Hachem denied making the comments. “The only thing I told the newspaper was that there should have been a court hearing on April 30 in Lebanon, but it was postponed because of the pandemic,” he said. In response, Arab News published the recording of the interview, in which he can be clearly heard making the statements attributed to him. 

Japan issued an arrest warrant after Ghosn, 66, escaped house arrest and fled the country.