Apple’s use of SiTime in iPhone 16e powers rally for chipmaker
iPhone 16e features the toughest back glass in a smartphone, and the brilliant 6.1-inch display is protected by the Ceramic Shield, which is tougher than any smartphone glass.
The discovery of SiTime Corp. components in the new iPhone 16e has sparked a stock surge for the lesser-known chipmaker, with shares soaring as much over 19% on Wednesday. A teardown of the smartphone by TechInsights uncovered timer chips from SiTime, a company specializing in clock components that generated approximately $200 million in revenue last year.
Mark Gurman, Nick Turner, and Janet Freund for Bloomberg News:
SiTime Chief Executive Officer Rajesh Vashist discussed the arrangement during a Morgan Stanley event Tuesday, indicating that his company “has a couple of chips in there.”
The chipmaker uses silicon parts — what are known as microelectronic mechanical systems — to replace the traditional quartz oscillators that keep time in devices. SiTime sees a huge potential market for this precision-timing technology, which can go into everything from cars to military navigation systems.
“Timing is a heartbeat of electronics,” Vashist said during the presentation. “Our thesis was that the quartz had done great, but it needed to be disrupted through semiconductor technology.”
TechInsights estimates that the cost per SiTime part in each phone is about 50 cents…
Apple accounts for about 22% of revenue, SiTime said.
MacDailyNews Note: SiTime Corporation (SITM) shares on Wednesday rose $29.77, or a tidy 19.53%, to close at $182.19 on the news. Congrats, SITM shareholders!
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