Tech Giants will Fight the Chip Shortage with Local Manufacturing

Tech Companies Via Unsplash - Mimi Thian
Tech Companies Via Unsplash - Mimi Thian

Relying on standard chips that are in high demand is making the chip shortage across the world a dilemma for several countries. However, this might change soon with big tech firms developing their own semiconductors.  

For instance, according to company announcements and many media reports, Amazon, Facebook, Apple, Tesla, and Baidu have all showed their intent to establish chip forms. The chip development in-house might be starting by the end of this year for several companies. 

 “Increasingly, these companies want custom-made chips fitting their applications’ specific requirements rather than use the same generic chips as their competitors,” Syed Alam, global semiconductor lead at Accenture, told CNBC in an interview.

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“This gives them more control over the integration of software and hardware while differentiating them from their competition,” Alam added.

Russ Shaw, a former non-executive director at U.K.-based Dialog Semiconductor, told CNBC that custom-designed chips can perform better and work out cheaper.