The Strategist

Tech giants to fight global microchips problem on their own

09/07/2021 - 09:51

Global tech giants, including Apple, Google, Amazon, Tesla and Baidu, have decided to design their own microchips. This, writes CNBC, is necessary to avoid shortages in production facilities.

In addition, the corporations' own developments will allow them to adapt the chips to their needs. It will help to increase the competitive advantage of the product.

Forrester's research director Glenn O'Donnell told the edition that the world pandemic, which had a serious impact on the supply chain, pushed the major corporations to accelerate creation of their own chips.

The specialist noted that the dependence on third-party developers hindered the technical development of companies.

Meanwhile, former Dialog Semiconductor board member Russ Shaw explained that chips that will be custom-built can perform better and cost less.

"These custom-designed chips can help reduce the power consumption of a particular technology company's devices and products, whether it's a smartphone or a cloud service," Shaw said.

The publication adds that not a month passes without a major institution announcing its intention to manufacture its own microchips.