“If Apple were to build its own chip development facility for a 10-nanometer silicon process, analyst Gene Munster of Piper Jaffray estimates it would cost the company about $2 billion. In contrast, for Apple to build its own full-fledged chip production facility would run between $5 billion and $7 billion,” Neil Hughes reports for AppleInsider.

“As a result, Munster believes it would be in Apple’s best interest to develop its own logic process technology rather than buying a factory,” Hughes reports. “He believes Apple could license or sell its own custom process to a variety of foundries, which would allow the company to lower its overall chip production costs.”

Hughes reports, “The analyst also noted in a note to investors on Monday that the number of companies that can develop silicon logic processes is dwindling. By taking on the job itself, Apple could expand its options for future A-series mobile chips, which power the iPhone and iPad.”

Much more in the full article here.

Related articles:
Samsung inks deal to resume stamping Apple A-series processors from 2015, South Korean report claims – July 15, 2013
RUMOR: Apple buys Taiwan fab to stamp its own chips – July 13, 2013
Apple exploring U.S.-based chipmaking deal with Globalfoundries – July 13, 2013
Apple to buy chips from TSMC as it attempts to extricate itself from dependency on Samsung – July 1, 2013
TSMC wins three-year deal to supply Apple with A8, A9, and A9X chips, say sources – June 24, 2013