Custom ASIC development, initiated by tech giants, is now commonplace in the industry, benefiting both American and Taiwanese manufacturers. These tech giants maintain their in-house chip development teams, with a particular focus on consumer applications. Examples include Google's Tensor series chips and Meta's dedicated work on VR/AR chips.
However, practical outcomes have revealed challenges. For instance, Google's latest Tensor G3 chip, featured in the Pixel 8 series, falls short in benchmark scores compared to Qualcomm's 2022 Snapdragon 8 Gen 2 and even Apple's A14 chip from three years ago. While benchmark scores don't directly translate to user experience, given Google's significant investment in IC design talent and resources, better chip performance was expected.
Similarly, Meta's recent release of AR glasses is marred by reports suggesting the possible discontinuation of its chip development team, as it struggles to compete with partner Qualcomm in terms of cost-effectiveness.
In 2022, Meta initiated cooperation with Qualcomm, expanding it to smart glasses in 2023. With Qualcomm's all-encompassing VR/AR/MR platform, chip development responsibilities have transitioned to Qualcomm. This strategic adjustment aligns with the business strategies of both companies.
Experts in IC design emphasize that many brands, especially in recent years, are keen on developing their chips. However, in-house chip development not only demands substantial capital but also requires a considerable time investment to accumulate technical expertise and intellectual property.
Building in-house chip development isn't solely about recruiting engineers and assembling teams; it's a long-term endeavor. Additionally, it's crucial to assess whether in-house chip development genuinely proves to be more cost-effective than opting for standard chip solutions. Examples such as the dissolving of Opp's Zeku division in 2023 and Apple's challenges with data modem chips serve as illustrative cases in this regard.
IC design industry insiders express that more and more customers desire differentiation from competitors through custom ASICs and in-house chip development. Nevertheless, from an IC design perspective, the ideal scenario is for customers to directly acquire standardized chip solutions. This approach is particularly sensible given the ever-increasing complexity of terminal applications. Unless clients have specific demands that necessitate custom chips, IC design providers argue that offering standardized solutions truly saves customers time and resources.
