Just now, Apple acquired a chip company

Apple currently has significant strength in chip technology. Looking back at Apple's development, the acquisition of PA Semi in 2008 was a turning point in the company's chip destiny.

According to reports, this chip company, which had 150 employees, was founded by Dan Dobberpuhl in 2003. He was the chief designer of the acclaimed Alpha and StrongARM microprocessors developed by Digital Equipment Corporation in the 1990s. At that time, PA Semi's chips were based on IBM's Power architecture.

At the time of the acquisition, Apple did not disclose the purpose of the acquisition, but insiders revealed that the negotiations were led by then-CEO Steve Jobs, with the aim of using PA Semi's PWRficient processor as the core for the iPhone and future iPods. Subsequent developments confirmed this viewpoint.

To some extent, this acquisition by Apple laid the foundation for the company's future in mobile phones, headphones, PCs, and a range of devices. Now, Apple has made another move.

Acquired Another Chip Company

According to the acquisition list classified as "gatekeepers" by the European Union, Apple has recently stealthily acquired the chip company IC Mask Design. EU listing documents show: "Apple will acquire all issued share capital of IC Mask Design Limited (referred to as 'ICMD') and hire some employees of ICMD."

Relevant information indicates that IC Mask Design Limited was established in 2002. Since its inception, the company has been providing IC layout design services, methodology-based IC layout training courses, and complete IC layout outsourcing solutions. After years of development, the company has become a leader in design services for the global semiconductor industry, with a worldwide customer base.

IC Mask Design Limited claims that the company has collaborated with over 250 "cutting-edge technology companies" in 35 countries worldwide. These companies include Moortec, Motorola, and Ikon Semiconductor, but Apple's name is not included in the client list published by IC Mask Design.

It is worth mentioning that a few months ago, the company's website was taken down, and its social media accounts were also shut down. These signs confirm that the company has been absorbed, and this occurred not long ago.

Due to the deletion of much of the company's information, we cannot gain detailed insights into what they were doing. However, from some archived materials, it can be seen that the company's greatest expertise lies in VDSM technology nodes.

"With expertise in VDSM technology nodes, we have accumulated rich experience and become the preferred partner for leading semiconductor companies. In the field of IC mask design, we are well-versed in the key aspects of IC layout design and provide cost-effective, high-quality solutions." "This can help customers avoid expensive rework, allowing them to confidently and freely focus on the functionality and performance of their own products," the company stated.

In a statement archived on the IC Mask Design website, the company noted, "When it comes to all technology nodes from 350nm to 3nm and below, few companies can claim to have the depth of knowledge that we can access internally."

This makes me imagine that the skills acquired by Apple through this acquisition will help further optimize its chips, including the development of alternative interconnect models and continued focus on energy efficiency, as these seem to be one of the core skills offered by this former independent company.

The company's expertise may also assist Apple in developing "UltraFusion" packaging technology for high-end M-series processors and server chips. Although this is merely speculation, the company's website has been taken down, and Apple may not disclose more information, so the specific truth remains unknown.

The Rise of Apple's Chips

After more than a decade of research and development, acquisitions of companies and intellectual property have been the main guarantees of their rise.

First, looking at the company side, after acquiring PA SEMI in 2008, Apple acquired Intrinsity in 2010. This company developed technology that supports the development and improvement of microprocessor cores. According to reports, Intrinsity's Fast14 NDL circuit technology allows for the construction of embedded IP processor cores that run at speeds up to twice as fast as standard versions, with almost no increase in die area or power consumption per MHz. These microprocessor cores can be built using the same processes as standard cores. Apple's acquisition of this company gives it more control over the production of its consumer electronics.

In 2012, Apple acquired the Israeli semiconductor startup Anobit Technologies. It is reported that the NAND flash chips developed by Anobit are key components in enhancing the performance of the NAND flash chips used in iPhone, iPad, and iPod. As Robin mentioned, Anobit provides flash memory solutions for enterprise and mobile markets based on its proprietary MSP (Memory Signal Processing) technology, aimed at improving the speed, durability, and performance of flash systems while reducing costs. The company claims that Anobit's technology consists of signal processing algorithms that can compensate for the physical limitations of NAND flash.

Also in 2012, Apple acquired a chip company—AuthenTec. It is reported that AuthenTec, founded in 1998, focuses on fingerprint scanning technology. Its extensive sensors can be embedded in computers to read fingerprint images and detect motion and fingerprint patterns. For enterprises, the company offers standalone fingerprint readers that can connect to computers to enhance login security. According to data, by the time of acquisition, AuthenTec had shipped over 100 million sensors. Its customers include several major smartphone manufacturers such as Motorola, Nokia, and Samsung After this acquisition, Apple has promoted the development of mobile fingerprint technology.

In 2013, Apple recently acquired the Silicon Valley low-power chip manufacturer Passif. Passif was founded by PhD students Ben Cook and Axel Berny from the University of California, Berkeley. Its technology includes a radio based on low-energy Bluetooth (known as Bluetooth Smart). This system allows users to pair Android phones or tablets with low-power devices such as Fitbit One or Jawbone UP. The communication chips developed by Passif have extremely low power consumption, which holds great promise for health monitoring and fitness devices that require ultra-long battery life.

In 2018, Apple announced it would acquire the majority of the power management IC business of UK chipmaker Dialog Semiconductor for a total of $600 million, which includes $300 million for acquiring 300 Dialog engineers (and assets) focused on Apple chip development, and $300 million for purchasing Dialog products to be delivered over the next three years. Apple seems pleased to take control of PMIC development. "Dialog has deep expertise in chip development, and we are excited that this talented group of engineers, who have long supported our products, can now work directly for Apple," said Johny Srouji, Apple's Senior Vice President of Hardware Technologies.

In 2019, Apple and Intel signed an agreement to acquire most of Intel's smartphone modem business. About 2,200 Intel employees will join Apple, along with intellectual property, equipment, and leases. Apple stated that by combining the existing and future wireless technology patents acquired with Apple's existing patent portfolio, Apple will own over 17,000 wireless technology patents covering various fields from cellular standard protocols to modem architecture and modem operation. Intel will retain the ability to develop modems for non-smartphone applications (such as personal computers, IoT devices, and autonomous vehicles). This transaction gave rise to the company's later baseband.

Conclusion

In its past development, Apple has continuously expanded its resources and capabilities in the semiconductor field, and the company has launched a series of chips. According to incomplete statistics, Apple has now launched multiple series of chips, including the A series (mobile chips), C series (baseband chips), H series (Bluetooth chips), M series (PC chips), N series (wireless chips), S series (watch chips), and U series (UWB chips). Meanwhile, over the past decade, Apple has applied for about 1,000 CPC G06F patents each year.

Apple's rise in chips and its achievements have inspired other large high-tech companies to enter the market as well. For example, as early as 2010, Alphabet acquired the chip manufacturer Agnilux (founded by former PA Semi employees) and launched the Tensor SoC on the Pixel 6 smartphone in 2021; Amazon acquired the microelectronics company Annapurna Labs in 2015, and the company is currently designing chips for Amazon Web Services (AWS) using that department; Meta recently acquired Rivos, among others.

As competition in the high-tech industry continues to intensify, major manufacturers will undoubtedly continue to enhance their capabilities in the semiconductor field. I am particularly interested in which chip companies Apple will acquire in the future and what chips (especially those aimed at data centers) it will launch.

Source: Semiconductor Industry Observer, original title: "Just now, Apple acquired a chip company."

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