SiTime (SITM, Financial), a specialized chip manufacturer, saw its stock soar nearly 20% following a teardown of the new iPhone 16e by TechInsights, which revealed the inclusion of SiTime's timing chip. This discovery highlights the growing significance of SiTime's technology in the electronics market.
SiTime, known for producing clock components, reported approximately $200 million in revenue last year. The company's CEO, Rajesh Vashist, discussed the integration of their chips in the iPhone at a Morgan Stanley event. SiTime's technology replaces traditional quartz oscillators with silicon-based micro-electromechanical systems, offering precise timing solutions for a wide range of applications, from automotive to military navigation systems.
Vashist emphasized the critical role of timing in electronics, suggesting that SiTime is poised to revolutionize the industry with its semiconductor technology. The integration of SiTime's components in the iPhone is part of a broader shift in the device's internal operations.
The iPhone 16e is the first model to feature Apple's custom-designed modem chip, known as C1, which will gradually replace Qualcomm's components. Apple has highlighted the energy efficiency of its new modem, which connects devices to cellular networks. However, SiTime was not mentioned during Apple's iPhone 16e launch event.
TechInsights estimates that SiTime's component costs about 50 cents per phone. Regulatory filings indicate that SiTime sells its parts through distributors like Pernas Electronics Co. and Quantek Technology Corp., with a significant portion of these products ultimately incorporated into Apple's devices. Apple accounts for approximately 22% of SiTime's revenue. Despite the developments, Apple has not provided a comment.
SiTime's stock closed at $182.19, marking its largest single-day gain since May. The company, based in Santa Clara, California, went public in 2019.
