Source: Bloomberg
Summary
Apple and Google are reportedly planning to co-develop custom chips to address the growing global shortage of central processing units (CPUs). The partnership aims to meet the increasing demand for CPUs, which has been exacerbated by the shortage. According to sources, the two tech giants are in talks to create a new line of custom chips. The collaboration is expected to help both companies reduce their reliance on third-party suppliers.
Our Reading
The announcement sounds ambitious.
Apple and Google are joining forces to co-develop custom chips, because apparently, that’s what you do when you’re a tech giant – make your own chips. This move is likely a response to the growing CPU shortage, which has been a thorn in the side of many tech companies. We’ve seen this script before: company X faces supply chain issues, company X decides to take matters into its own hands, and voilà! A new era of innovation begins. The real question is, how long will it take for them to realize they’ve just reinvented the wheel?
Author: Evan Null
Partnership Amidst Shortage
The CPU shortage has been a major concern for tech companies, with many struggling to keep up with demand. By co-developing custom chips, Apple and Google aim to reduce their reliance on third-party suppliers and ensure a more stable supply chain.
Custom Chips: The New Norm?
This move is not unprecedented, as several tech companies have already started developing their own custom chips. The trend is likely to continue, as companies seek to differentiate themselves and reduce their dependence on external suppliers.
Addressing the Shortage
The CPU shortage has been caused by a combination of factors, including increased demand, supply chain disruptions, and manufacturing issues. By co-developing custom chips, Apple and Google hope to alleviate some of the pressure and ensure a more stable supply of CPUs.
Impact on the Industry
The partnership between Apple and Google is likely to have a significant impact on the tech industry. Other companies may follow suit, leading to a shift towards custom chip development.
Conclusion
The co-development of custom chips by Apple and Google is a response to the growing CPU shortage. While the move is ambitious, it remains to be seen whether it will be successful in addressing the shortage.
