Analog Devices Faces Multimillion-Dollar Irish Tax Fight (1)

Analog Devices Inc. is battling a tax demand from Irish authorities, in a case that the U.S. chip maker says could materially hurt its earnings.

Irish officials told the company, an Apple Inc. supplier, that its Irish tax resident unit owed about 43 million euros ($49 million) relating to inter-company transfers stretching back to 2013, Analog said in filings last month. This assessment excludes any penalties and interest, it said. The company’s shares dropped as much as 3.4 percent on Wednesday.

Norwood, Massachusetts-based Analog said it will “vigorously defend” its position and is appealing the decision. It warned that if ...