Despite these challenges, Apple continues to innovate, with its latest A17 Pro chip, the first 3-nanometer chip to ship at high volume, enabling advanced graphics rendering for improved gaming. The company also replaced Intel's PC processors with its own M1 chip in 2020, marking a significant shift in the semiconductor industry. However, Apple still relies on third parties for components like modems and memory, and is vulnerable to geopolitical tensions due to its reliance on TSMC in Taiwan for chip manufacturing.
Key takeaways:
- Apple has been designing its own custom chips for its devices since 2010, which has allowed the company to optimize its products and reduce reliance on other companies.
- Apple's most advanced silicon is primarily manufactured by Taiwan Semiconductor Manufacturing Company, which presents a risk due to potential geopolitical tensions.
- Apple is not yet able to produce all components of its devices, such as modems, and still relies on companies like Qualcomm for these parts.
- Despite challenges such as a slowdown in the release of new chips and a shortage of skilled chip labor in the U.S., Apple continues to lead in the semiconductor industry and is looking to diversify its supply chain.