What goes up

4 December 2017 By Liam Proud Follow @liamwardproud

UK-based Dialog lost a third of its value on fears the iPhone maker will build its own chips. Rising sales of smart gizmos have boosted demand for semiconductors, and their makers’ stocks. Rosy valuations downplay the risks for a fragmented sector in a rapidly changing industry.

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Dialog Semiconductor said on Dec. 4 that top customer Apple could build its own power-management chips for its iPhone handsets rather than rely on the Anglo-German chipmaker.

The company said that while it continues to supply Apple with customised chips “across a range of platforms without material change to its ongoing business relationship”, it “recognizes Apple has the resources and capability” to design such chips internally and could do so in coming years.

Dialog said that it did not expect Apple to start designing its own chips next year, contradicting a report published on Nov. 30 by Nikkei Asian Review.

Dialog shares were down 18.5 percent to 25.45 euros at 1150 GMT on Dec. 4. They have fallen 31 percent since Nov. 29.

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