Amazon, Tesla Are Among the Companies Moving More Chip Development In-House

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One way for companies to overcome the global microchip shortage is to start developing chips themselves — something a few of the world’s mightiest corporations are reportedly doing.

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Apple, Amazon, Facebook, Tesla and Baidu are among the names looking to reduce their reliance on third-party chip suppliers by bringing certain parts of the chip development process in-house, CNBC reported on Monday.

None of these companies look to manufacture the chips themselves because it would take billions of dollars and several years to build an advanced chip factory. Instead, they are focusing on chip design and performance.

This is not necessarily a new development, though it has picked up steam in recent months as companies look to deal with the world’s chip shortage. As GOBankingRates previously reported, chip demand exceeded supply even before the COVID-19 pandemic. But the situation worsened considerably when the pandemic caused a worldwide shutdown of production facilities and a massive supply-chain bottleneck.

That bottleneck has contributed to a flurry of activity involving major brands looking to do some of the chip development themselves:

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

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