Electronics industry must side with China in trade war, says Dialog's boss

June 03, 2019 //By Peter Clarke
Electronics industry must side with China in trade war, says Dialog's boss
Jalal Bagherli, the CEO of Dialog Semiconductor plc, has said that the electronics industry has no choice but to side with China against the United States if the trade war between the two superpowers escalates.

"For electronics and chip companies I don’t think we have a lot of choice. It's not like we would pick China to work with, but we just don’t have a choice. It’s just where everything is made," Bagherli is quoted saying this in The Sunday Telegraph.

China is estimated to make more than one third of all the world's electronic equipment (see Europe can shine in global electronic production). This is partly because large EMS companies such as Foxconn manufacture there.

Dialog Semiconductor plc is a provider of power management, configurable mixed-signal IC, AC/DC, solid-state lighting and Bluetooth low energy wireless chips and had annual sales of US$1,442 million in 2018 making it one of the larger semiconductor based in Europe, after the likes of AMS, Infineon, NXP and STMicroelectronics.

Bagherli is clearly taking an economic position saying that in the electronics and semiconductor sectors China has now risen too fast and too high to be ignored or shut out.

Bagherli did not state definitely in the article whether Dialog Semiconductor needs to cease supplying components to communications equipment giant Huawei. The claim is made that as Huawei manufactures in Holland, Germany and the UK and Dialog manufactures in Taiwan they don't fall under US-imposed regulations. So far TSMC, which manufactures for Dialog amongst many others, has taken the position that it too is clear to carry on supplying Huawei.

Next: ARM took a different position

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