Tech giants are rushing to develop their own chips – here’s why

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Tech giants are rushing to develop their own chips – here’s why
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Apple, Amazon, Facebook, Tesla and Baidu are all shunning established chip firms and bringing certain aspects of chip development in-house.

are all shunning established chip firms and bringing certain aspects of chip development in-house, according to company announcements and media reports.

"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"This gives them more control over the integration of software and hardware while differentiating them from their competition," Alam added., told CNBC that custom-designed chips can perform better and work out cheaper.

"These specifically designed chips can help to reduce energy consumption for devices and products from the specific tech company, whether it relates to smartphones or cloud services," Shaw said.is another reason why big tech firms are thinking twice about where they get their chips from, Glenn O'Donnell, research director at analyst firm Forrester, told CNBC. "The pandemic threw a big wrench in these supply chains, which accelerated efforts to do their own chips.

"Many already felt limited in their innovation pace being locked into chipmaker timelines," O'Donnell said.At present, barely a month goes by without a Big Tech company announcing a new chip project.it was moving away from Intel's x86 architecture to make its own M1 processor, which now sits in its new iMacs and iPads.that it is building a "Dojo" chip to train artificial intelligence networks in data centers.

Baidu last month launched an AI chip that's designed to help devices process huge amounts of data and boost computing power. Baidu said

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