Apple snares engineers from key European supplier Dialog to bolster in-house chip design

Apple Inc. has agreed to bring in house more than 300 engineers from one of its key suppliers, Europe-based Dialog Semiconductor PLC—part of a $600 million deal that boosts the smartphone giant’s chip-design operations.

Under the deal, AppleAAPL, -4.63%  will transfer to its workforce a group of Dialog engineers who have already been supporting Apple’s chip development, Dialog said Thursday. The engineers represent about 16% of Dialog’s total workforce.

Apple will pay Dialog $300 million in cash and prepay $300 million for Dialog products to be delivered over the next three years, the European company said. As part of the deal, Apple will also assume control of certain Dialog facilities in Italy, Germany and the U.K.

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The Dialog deal is one of Apple’s largest in terms of acquiring new staff. Buying up assets and key staff from startups and suppliers—or acquiring whole companies to bring supply lines, or promising new technology, in house—isn’t unusual in the tech industry. Still, the Dialog deal stands out. Apple’s largest-ever acquisition—a $3 billion deal in 2014 for Beats Electronics—included the addition of about 700 people.

An expanded version of this report appears on WSJ.com.

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