Apple’s move would reduce its dependence on Dialog Semiconductor, that makes power-management chips for smartphone makers.
“Based on Apple’s current plan, they are set to replace partially, or around half of its power management chips to go into iPhones by itself starting next year,” a source said, according to the Nikkei report.
Shares of the Anglo-German chipmaker fell 7.2%, while Apple’s shares were up marginally in premarket trading.
Apple (AAPL) did not immediately respond to a request for comment. Dialog could not immediately be reached for comment.