Global tech behemoths are racing to develop their own semiconductors tailor-fit for their applications amid the global chip shortage, CNBC reported.

  • Among those shifting to the in-house production of chips is Apple, which announced its chip project in November 2020. This was followed by firms including Amazon, Baidu, Facebook, and Tesla, based on company statements and reports.
  • Analysts believe the firms are looking to develop their own chips to be custom-designed for their respective applications, and boost performance while maintaining moderate costs. These are also expected to reduce the energy consumption of devices.
  • Companies are also making their own, given sourcing concerns amid the ongoing global chip shortage. Supply chain issues continue to hound the industry, following the impact of the COVID-19 pandemic.
  • The companies are looking to partner for the development, as putting up an advanced chip factory could not only cost $10 billion, but it would take several years to build. Analysts believe firms would rather tap outside firms.

Researchers said the firms will also have hiring constraints, given the shortage of individuals skilled to design high-end processors. AAPL closed Friday up by 0.42%, AMZN up 0.43%, FB up by 0.26%, and TSLA up 0.16%. 9888 closed Monday up 2.02%.