Apple added 300 computer chip engineers to its team after a deal to hire them from one of its British suppliers.
It is paying Dialog Semiconductor $300m (£227m) for the acquisition, which also includes some of the Reading-based company’s patents and facilities. Apple has been using Dialog’s products for a very long time to monitor and control power consumption in their iPhones and iPads.
The deal represents one of Apple’s biggest takeovers in headcount terms. “Dialog has deep expertise in chip development and we are thrilled to have this talented group of engineers who have long supported our products now working directly for Apple,” said the handset maker’s hardware technologies chief Johny Srouji.
The Californian company now have its own designs, its own computer processing units (CPUs) and also announced last year, that they are ending a partnership with another UK company, Imagination Technologies, to design its own in-house graphics processing units (GPUs) too.
Last year November, rumours surfaced that Apple planned not make use of Dialog’s components, causing the supplier’s shares to decrease 20%. However, those rumours appear to be true since Apple has also announced it has pre-paid Dialog a further $300m to secure products from it over the next three years.
One expert also said that Apple had a reputation to be in charge of everything. “In the industry, this kind of move is known as being more vertically integrated,” said senior editor at the engineering-focused news site AnandTech.
She added, “It’s something that’s already true of Samsung and its smartphones – for example, it also makes its own displays. “The benefits for Apple having full control at the component level should be lower overheads and therefore reduced costs.
“But a downside could be there’s less fallback if something goes wrong.” Dialogue said it expected the deal would be completed within the first six months of 2019. Its shares have risen more than 26% following the announcement this morning
with additional information from BBC