Dialog Semiconductor's PMIC team has now completed its transfer to Apple, with more than 300 Dialog staff now officially becoming Apple employees
Dialog Semiconductor said it has completed its previously announced transaction with Apple to license its power management integrated circuit (PMIC) technologies and transfer assets to Apple. This involves more than 300 Dialog staff transitioning to Apple employees, becoming part of Apple's hardware technologies team under Johny Srouji.
Dialog will receive $600 million in total, consisting of $300 million in cash from Apple for the transaction and prepayment of $300 million for Dialog products to be delivered over the next three years. Dialog said it has also been awarded a broad range of new contracts from Apple for the development and supply of other mixed-signal integrated circuits (ICs). With the loss of a large chunk of its PMIC team, the company’s CEO Jalal Bagherli said the company’s next phase of growth will now focus on providing custom and configurable mixed-signal integrated circuits across a broader customer base addressing internet of things (IoT), mobile, automotive, and computing and storage markets.
Dialog Also Acquires Mobile RF IC Business from Silicon Motion for $45 Million
With cash in the bank, Dialog is bolstering its new focus. Last month it acquired Silicon Motion Technology Corporation’s mobile communications product line, FCI, for $45 million in an all-cash transaction. The deal is expected to be completed this year subject to regulatory approval.
The acquisition provides Dialog with a portfolio of connectivity-based products that includes ultra-low-power Wi-Fi system-on-chip (SoCs) and modules, mobile TV SoCs, and mobile communication transceiver ICs. FCI provides mobile TV SoCs in terrestrial digital multimedia broadcasting (T-DMB) and integrated services digital broadcasting – terrestrial (ISDB-T), with radio frequency (RF) tuner demodulator SoC solutions for smartphones, tablets, and automotive portable navigation devices (PNDs). In Q4 2018, FCI began ramping production of its first Wi-Fi SoC, FC9000, and accompanied this with a range of fully Wi-Fi certified module solutions, including integrated antenna options.
Its product range is designed specifically to meet the demands of battery powered IoT devices, enabling direct connectivity to internet access points (APs), while providing banking-grade security.
Dialog’s Bagherli commented, “Ultra-low-power Wi-Fi is a strong strategic fit for Dialog with the opportunity to combine Wi-Fi and Bluetooth low-energy chips and modules selling into our complementary IoT, consumer, and automotive markets.” In addition to the current product lines, the acquisition also brings a broad range of new technologies and engineering capabilities to Dialog, with extensive design expertise in RF wireless communications for cellular 4G and 5G, Narrowband IoT (NB-IoT) transceiver, power amplifiers, and deep sub-micron chip design.
As Silicon Motion’s mobile communications unit, FCI reported approximately $30 million revenue in 2018 from all its current product lines, with sales primarily generated from its mobile TV SoCs.