China builds stake in Dialog
China is increasingly trying to use its economic power to buy its way into significance in the global electronics market. And it has responded to the fall in Dialog’s shareprice. Dialog’s share price has dropped by nearly half over the last year – from nearly €50 to under €25 on rumors that Apple might be preparing to drop Dialog as a supplier of power management ICs. That possibility was acknowledged by Dialog on Monday (see Dialog admits Apple could make PMICs).
On the same day Dialog posted in a regulatory notice that Unis Technology Strategy Investment Ltd. and Tsinghua Unigroup International Co. Ltd., both subsidiaries of the university, had taken 6.89 percent and 0.26 percent respectively in the company.
This would not be the first time that Apple’s use and abandonment of a UK based company benefits China. Apple was a close partner of graphics processing IP licensor Imagination Technologies. Apple’s announcement that it would drop Imagination as a supplier caused Imagination’s share price to tumble and has resulted in Imagination selling itself to Canyon Bridge Capital Partners LLC (Palo, Alto, Calif.), a California venture capital firm that manages funds provided by China.
While Apple’s preference to make its own semiconductors, albeit fablessly, could yet sow the seeds of a migration of technology from west to east.
Related links and articles:
News articles:
Dialog admits Apple could make PMICs
Imagination, MIPS to be sold to China-, California-connected VCs
President Trump blocks Lattice deal
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