Apple's move to its own chips for power management may eliminate the current supplier

In the last few months, there has been a lot of talk about Apple trying to move the production of some components from external suppliers to its own manufacturing network. One such component should be device power management chips. Now a similar step has been indirectly confirmed by the owner of the company that supplies these components for Apple. And as it seems, this may be a liquidation step for that company.

This is a supplier called Dialog Semiconductor. For the past several years, he has been supplying Apple with microprocessors for power management, i.e. so-called internal power management. The director of the company drew attention to the fact that relatively tough times await the company in the last speech for shareholders. According to him, this year Apple decided to order 30% less of the aforementioned processors than last year.

This is a bit of a problem for the company, as Apple's orders make up roughly three-quarters of the company's total production. In addition, the CEO of Dialog Semiconductors confirmed that this reduction will be carried over into the following years, and the volume of orders for Apple will thus gradually decrease. This can be a very serious problem for the company. Given this situation, he confirmed that he is currently trying to find new customers, but the road will be thorny.

If Apple comes up with its chip solutions for power management, they will most likely be very good. This presents a challenge for companies operating in this industry that they will have to overcome in order to remain attractive to their next potential customers. It can be expected that Apple will not be able to immediately produce its own microprocessors in sufficient quantities, so the cooperation with Dialog Semiconductors will continue. However, the company will have to meet strict requirements so that its manufactured products match those made by Apple.

Own production of processors for power management is another of several steps by which Apple wants to break away from dependence on external suppliers who produce components for it. Last year, Apple introduced a processor with its own graphics core for the first time. We will see how far Apple engineers will be able to go in terms of designing and producing their own solutions.

Source: 9to5mac