“For electronics and chip companies I don’t think we have a lot of choice. It’s not like we would pick China to work with, but we just don’t have a choice. It’s just where everything is made,” Bagherli is quoted saying this in The Sunday Telegraph.

China is estimated to make more than one third of all the world’s electronic equipment (see Europe can shine in global electronic production). This is partly because large EMS companies such as Foxconn manufacture there.

Dialog Semiconductor plc is a provider of power management, configurable mixed-signal IC, AC/DC, solid-state lighting and Bluetooth low energy wireless chips and had annual sales of US$1,442 million in 2018 making it one of the larger semiconductor based in Europe, after the likes of AMS, Infineon, NXP and STMicroelectronics.

Bagherli is clearly taking an economic position saying that in the electronics and semiconductor sectors China has now risen too fast and too high to be ignored or shut out.

Bagherli did not state definitely in the article whether Dialog Semiconductor needs to cease supplying components to communications equipment giant Huawei. The claim is made that as Huawei manufactures in Holland, Germany and the UK and Dialog manufactures in Taiwan they don’t fall under US-imposed regulations. So far TSMC, which manufactures for Dialog amongst many others, has taken the position that it too is clear to carry on supplying Huawei.

Next: ARM took a different position

ARM, a chip intellectual property licensor that was founded in the UK but is now owned by Japan’s SoftBank has taken another view. ARM ceased cooperation with Huawei because ARM IP may contain US-invented technology (see Report: ARM complies with US trade ban, cuts off Huawei).

Dialog has grown by expansion, including the acquisition of US companies including Silego, which is the source of its configurable mixed-signal IC technology (see Dialog buys configurable mixed-signal IC pioneer).

In the interview Bagherli said that, if anything, the trade tension is creating opportunities as Chinese equipment makers are now more likely to select Asian and European component suppliers rather than US suppliers.

Bagherli has been CEO at Dialog semiconductor since 2005, having previously led Alphamosaic Ltd. to a successful sale to Broadcom in 2004. Prior to that Bagherli had engineering and management roles at STC, Texas Instruments and Sony Semiconductor.

Related links and articles:

Sunday Telegraph article

News articles:

China set to make a fifth of world’s chips in 2020

Europe can shine in global electronic production

Report: ARM complies with US trade ban, cuts off Huawei

Dialog buys configurable mixed-signal IC pioneer

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