Tech Giants Rush for Custom-Made Chips as Competition and Shortages Hots Up

Tech Giants Rush for Custom-Made Chips as Competition and Shortages Hots Up

(CNBC) Tech giants led by Apple, Amazon, Tesla, Facebook, and Baidu are exploring the idea of custom-made chips by in-house development. 

The move towards in-house chip development by tech giants reflects a desire to differentiate from rivals and gain more control over the software and hardware integration.

Big tech is also worried about the global semiconductor shortage, with the Covid pandemic also constraining supply chains across the globe.

Analysts say custom-made chips can work out cheaply by reducing energy use by devices and products and perform better.

Apple, Tesla, Google, Baidu, Amazon, and Facebook have all announced a plan to transition to in-house chip making, with more tech giants expected to follow suit. The tech giants are aiming for chip designing before transitioning to costly manufacturing.

TSLA is up +0.13% on premarket, FB closed up +0.26% on Friday, AMZN is down -0.10% on premarket, AAPL is down -0.0065% on premarket, 9888 is up +2.02%.

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