Analyst: Apple better off focusing on chip process development rather than fabrication

“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


    1. the primary goals behind Apple’s investing in their own fabrication plants are:
      a. independence from archenema dickheads like Samdung.
      b. total in-house control of their products.

      ALWAYS reinvest your profits back into your company as much as possible.

    2. Not sure that Munster has to stop talking, but he is wrong about the issue as Apple already does what he thinks the company can do. Apple designs not only logic, but also per layer design for lithography machines for specific manufacturing norms (such as 45 nm, 32/28 nm, soon to be 22-20 nm, and so on.)

  1. Aplles got the money, Buy the best, do it! Keep all the other companies from copying your designs while its being created. That would be a huge benefit.

  2. It’s a shame that no matter what Apple tries to do, the company is seen as making a mistake that will harm the company. Apparently everyone sees it that way. Why is it that Apple is always seen as making bad decisions, yet companies like Google and Amazon always make the proper decisions to keep investors are happy?

    1. Why is it that Apple is always seen as making bad decisions…?

      I know why! It’s because of
      fud fud fud fud
      Lovely FUD, Wonderful FUD!
      Lovely FUD, Wonderful FUD….
      Lovely FUD (lovely FUD)
      Lovely FUD (lovely FUD)

      Losers hate winners. It’s part of the game.

  3. Did they miss this? “On 23 April 2008, Apple announced that they had acquired P. A. Semi.” And yes, Apple will “build its own full-fledged chip production facility”. And a battery facility, and a display facility, … So many billions in the bank and so many ways to own the entire supply chain.

    Idiots! Start thinking past the next quarterly reports and SEE THE BIGGER PICTURE.

  4. You mean only head of the Unions think that Apple is better off focusing on chip process development… no the people of America in general. This is almost too political to be part of a technology conversation.

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