Apple could begin designing its own iPhone power management chips in 2018 as part of a broader strategy to step up its game in the semiconductor space, Nikkei Asian Review reported.
The Japan-based news outlet stated Apple may supply up to half of the power management chips used in its iPhones, reducing its reliance on current supplier Dialog Semiconductor. The UK-headquartered company provides chips for the iPhone, iPad and Apple Watch.
Apple’s business generated nearly 75 per cent of Dialog’s revenue in 2016, the newspaper reported. The chips control energy use, charging and battery management.
While Apple already produces a number of its own chips, the newspaper reported the vendor is seeking to boost its competitive edge, and smooth hardware and software integration by producing more silicon in-house.
If the report is accurate it could prove ominous for Dialog Semiconductor: a previous decision by Apple to ditch graphics technology provided by UK-based Imagination Technologies ultimately led to the company being sold to private equity company Canyon Bridge Capital Partners.
Apple is also in the process of reducing its reliance on Qualcomm as a provider of baseband processors with the incorporation of Intel silicon (which is reportedly also in line to power future 5G iPhones)