Apple is going to design its own power management chips which will be used in the 2018 iPhones and in return, this will stop Apple’s dependence on Dialog Semiconductor. Apple wants to enhance its semiconductor capabilities so that it is able to compete with its rivals in a better position.
The main power management chip used in iPhones controls battery management, charging function, and energy consumption. Currently, the UK company Dialog Semiconductor designs the main power management chips that are employed in the Apple Watch, iPhone, and iPad devices. 74% of Dialog’s revenue in 2016 came from Apple. After modems, core processors, and memory chips, power management chips are one of the most significant and expensive components in a smartphone.
Apple wants to boost the production of its own semiconductors in order to compete better in emerging technologies like artificial intelligence applications and decrease dependence on external chip designers. Apple will improve its position to integrate hardware and software and to manufacture differentiated products by developing more of its own chips. This will also help it to compete better with its rivals such as Huawei Technologies and Samsung Electronics.
According to sources, the power management chip made by Apple would be one of the most advanced ones in the industry. It has the potential of having processing capabilities that could let it control power consumption of various components and better monitor them. This will result in iPhones that will perform better on lower power consumption and save battery in the process.
According to sources in the industry, the new chips will be manufactured solely by TSMC, which is the largest semiconductor manufacturer in the world. Since 2016, TSMC has been the sole supplier for manufacturing core processor chips for iPhone and it looks like the company is going to be Apple’s primary partner for 2018 too.
