Apple is buying a $600 million stake in Dialog Semiconductor in a deal Dialog is describing as an asset transfer and licensing deal.
Dialog’s current portfolio is focused mainly on mobile devices, with Bluetooth wearables-on-a-chip, CODEC chips for smartphones, and power management ICs for every type of portable electronics. Power managment ICs are by far the most visible component, although they do have the very interesting GreenPAK, a sort of mixed-signal FPGA-ish thing that is one of the more interesting chips to be come online in the last few years. Apple of course are a Trillion dollar company that once made computers, but now receives most of its revenue through phone dongles and lightning connector converters. It is not clear at the time of this writing whether a Dialog engineer with experience in heat management will be joining Apple.
In the last week, Apple have taken some bad press about the state of their supply chain. Bloomberg reported Apple found hidden chips in Supermicro motherboards. ostensibly implanted by Chinese intelligence agencies. This story is completely true, except for all the details, explanation of how this supply chain hack was done, and quotes from all the relevant parties. In short, infiltration of a supply chain by foreign agents could happen (and I suspect Bloomberg engineers found something in some of their hardware), but the Bloomberg piece is merely just a wake-up call telling us yes, you are vulnerable to a hardware attack.
More than Fear, Uncertainty, and Doubt propagated by the Bloomberg piece, this is further evidence of Apple’s commitment to vertical integration. Apple are making their own chips, and the A12 Bionic in the new iPhone X is an Apple-designed CPU, GPU, and ‘neural engine’ that turns your Facetime sessions into animated emojis. This chip is merely the latest in a series of SoCs developed by Apple, and adds to Apple’s portfolio of chips designed to run the Apple Watch, Apple AirPods, and system management controllers in Apple products. There’s no other electronics manufacturer that is as dedicated to vertical integration as Apple (although we’re pouring one out for Commodore), and the acquisition of Dialog will surely add to Apple’s capabilities.