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Apple (AAPL) - Get Apple Inc. Report supplier Dialog Semiconductor (DLGNF)  plunged more than 30% Tuesday amid concerns that the world's biggest technology company is looking to start its own chip business

Dialog shares fell 32.5% in the opening 90 minutes of Frankfurt trading after broker Bankaus Lampe cut its rating on the chipmaker to "sell" from "buy", pushing the stock to €32.25, its lowest since September 2016 and the biggest one-day loss since December 2000, before paring losses to around 21.5% by 11:00 CET.

The broker said there is strong evidence that Apple is developing its own power management integration circuits (PMICs) and intends to replace, at least in part, chips made by Dialog. Lampe said it believes that Apple is setting up PMIC design centers in Munich and California, CNBC reported.

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Dialog is a key supplier to Apple and relies on the company for around three-quarters of its annual revenues.

Last week, Imagination Technologies (IGNMF) shares plunged to an 8-year low after it said that Apple will stop using the chip maker's intellectual property starting next year.

The British chip designer said that it has been informed by Apple that it will no longer use its intellectual property in new products in 15 months to two years time and that it will be no longer eligible for royalty payments under the current agreement, which the group described as "essential to its business". Apple uses Imagination's graphic processor units it its iPhones, iPads, iPods, Apple TV and the Apple Watch.

The company's shares fell more than 60% to 103.5 pence on April 3. Shares were trading 0.24% down on Tuesday at 103 pence, extending a three-month loss of 61.1%.