Tech giants are developing their chips

Some of the world’s biggest tech companies are trying to develop their own chips, also called semiconductors. They came up with the idea not to rely on regular chips because of their high demand.

According to media reports and company announcements, Amazon, Apple, Facebook, Baidu, and Tesla, have already started establishing chips while developing and bringing specific aspects in their chips.

Global semiconductor lead at Accenture, Syed Alam, told CNBC that these companies want to make customized chips that fit their specific requirements instead of using the same universal chips as their rivals.

Alam added that it gives them more control over integrating software and hardware while separating them from their rival(s).

A former director at U.K.-based Dialog Semiconductor, Russ Shaw, told CNBC that customized chips could perform better while being cheaper.

Shaw said these individually designed chips could help decrease energy consumption for products from the particular tech company related to cloud services or smartphones.

The research director at an analyst company called Forrester, Glenn O’Donnell, told CNBC that another important reason for producing customized chips is the continuing global chip shortage. According to his comments, this is the reason why big tech companies started to think a lot about getting their chips. He added that this pandemic disorganized a situation in these supply chains, which stimulated efforts to do their own chips.

O’Donnell said that many companies felt limited in their innovation speed that could not fit into chipmaker timelines.

The most outstanding example came at the end of 2020 when Apple declared it was making its M1 processor instead of depending on Intel’s x86.

More recently, Tesla started building a new chip called Dojo to train its artificial intelligence networks in centers. The company began to produce custom A.I. chips for its cars in 2019.

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