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The tech giants are tired of the lack of chips

As the global chip shortage in recent months has highlighted the vulnerability of global supply chains, many tech giants have decided to seek to increase their autonomy. That’s why more and more of these companies are turning to designing their own chips.

Giants such as Apple, Amazon, Facebook, Tesla or China’s Baidu are also working on the production of chips or certain aspects of them within the company. In other words, tech giants are trying to be as independent as possible from global supply chains, he writes CNBC.
All this also means that internal chip development can be tailored more specifically to meet the specific needs of companies, and competitors can be less and less common using very similar semiconductors for their own products.

This could also mean that companies can have more control over software and hardware integration than they do now. Said Syed Alam Accenture expert.

Transformation can have serious benefits. For example, some analysts say that specially designed and manufactured chips may consume less power.

Perhaps most importantly, it is current Global chip shortage Highlight how innovation and business opportunities for tech giants depend on supply chains. That is, it is no coincidence that, in recent months, addiction reduction has suddenly become an urgent issue.

Tech giants will take chip design homeSource: TSMC

A good example of the shift was when Apple announced last November that it would abandon the Intel x86 product and use its own M1 processor in iMacs and iPads.

Recently, Tesla announced that it will build its own chip called Dojo for AI networks operating in data centers. In 2019, Tesla began building cars with special artificial intelligence chips that help on-board software in making decisions.

Last month, Baidu also created its own artificial intelligence chip. Kunlun 2 is used in autonomous technology, among other things, and mass production has already begun. In addition to those companies, Google, Amazon, and Facebook are also working on designing their own chips.

However, it is not certain that these developments will solve the fundamental problems of chip manufacturing. On the other hand, because so far the tech giants are only interested in design and not manufacturing. Manufacturing is very expensive. In comparison, setting up the TSMC plant in Taiwan, one of the largest in the world, cost nearly $10 billion and took many years. That is, it is likely that technicians will continue to commission certain manufacturers such as TSMC or Intel.

Silicon Valley will not have an easy transition to chip developmentSource: AFP / Imaginechina / Stringer

The other problem is that there are currently very few professionals in Silicon Valley who specialize in developing high-quality chips. This is because the technology center in the United States has focused so much on software development in recent decades that hardware manufacturing has been completely neglected in the background.

That is, while it is clear that the tech giants are trying to switch to chips that they have developed themselves, the big question will remain whether this will actually solve the core problems of the sector.

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