Technology
Friday, December 1st, 2023 4:57 pm EDT
Key Points
- Evolution of Apple’s Custom Silicon: The article highlights Apple’s shift from relying on third-party chips to developing its own custom semiconductors. Beginning with the iPhone 4 in 2010, Apple gradually expanded its in-house chip design to power various devices, including iPhones, iPads, Macs, Apple Watches, and AirPods.
- Technological Advancements and Challenges: Apple’s silicon team, led by Johny Srouji, has achieved significant technological advancements, with the latest A17 Pro chip being the first 3-nanometer chip to ship at high volume. The move to custom M-series chips for Macs has also allowed Apple to outperform traditional competitors like Intel. However, the article underscores the risks associated with relying on a single vendor, Taiwan Semiconductor Manufacturing Company (TSMC), for manufacturing and the challenges of staying competitive in a rapidly evolving market.
- Diversification Efforts and Future Challenges: Apple’s efforts to diversify its supply chain by investing in manufacturing facilities in the U.S., such as TSMC’s fab in Arizona and the new Amkor facility, are highlighted. The article also discusses Apple’s challenges in finding skilled chip labor and its position in artificial intelligence (AI). While Apple claims not to be falling behind in AI, analysts express skepticism, emphasizing the importance of software catching up with hardware advancements in Apple Silicon for continued success in the AI space.
Apple’s success over the past two decades, driving its soaring stock price, has been attributed to iconic consumer devices like the iPhone, iPad, Apple Watch, and AirPods. However, behind these gadgets, Apple has been designing custom chips to power its products. The company shifted to using its own semiconductors in the iPhone 4 in 2010 and, as of the present year, all new Mac computers are powered by Apple’s own silicon, marking the end of a 15-year reliance on Intel.
Johny Srouji, the head of Apple’s silicon, highlighted the company’s shift toward in-house technologies, emphasizing the freedom it provides to optimize products. Apple’s silicon team, consisting of thousands of engineers globally, focuses on developing system-on-chip (SoC) designs, combining the central processing unit (CPU), graphics processing unit (GPU), and other components. Apple has various chip series, such as the A series for iPhones and iPads, the M series for Macs, the S series for the Apple Watch, and others like H, W, U, and R1 for specific functionalities.
Apple’s recent A17 Pro chip, built on 3-nanometer technology, was highlighted for its significance in features like computational photography and advanced rendering for gaming. The shift to in-house chip design has also been prominent in Mac computers, with the M1 chip replacing Intel processors in 2020. The M3 chip, announced in October, is designed for Macs, offering features like extended battery life and enhanced graphics performance.
While Apple has excelled in chip design, it still faces challenges, particularly in areas like modems, where it relies on Qualcomm. Apple has, however, purchased Intel’s 5G modem business, signaling potential plans for developing its own cellular modem. Despite advancements, Apple acknowledges it cannot produce every chip component internally and relies on external manufacturing, primarily through Taiwan Semiconductor Manufacturing Company (TSMC). Apple is also making efforts to diversify its supply chain, with commitments to facilities in the U.S.
The article delves into Apple’s strategy, challenges, and achievements in chip design, emphasizing the company’s commitment to building the best products through in-house technologies while navigating the complexities of the semiconductor industry.
For the full original article on CNBC, please click here: https://www.cnbc.com/2023/12/01/how-apple-makes-its-own-chips-for-iphone-and-mac-edging-out-intel.html
