Apple Inc. (AAPL) To Build Its Own Chips? An Idea To Look At Closely

The fact that Apple Inc. (NASDAQ:AAPL) pays close attention to its supply chain is no surprise to anybody. We have covered this story in the past, and you may find this piece interesting (for a reason you may not expect).

While we all have become familiar with the companies in Apple’s supply chain, Cupertino is always looking to make changes. It is always looking to upgrade its position as a means of improving efficiency.

Digitimes recently took a closer look at what is going on right now. More specifically they published a piece discussing the possibility of Apple Inc. (NASDAQ:AAPL) building its own chips. This is an idea that deserves a second look.

Here is a brief excerpt from the piece:

“If Apple builds its own silicon at its own chip fab, the risk it will face will be greater than the benefits for the company, according to Nobunaga Chai, analyst for semiconductors at Digitimes Research. But if Apple has to own a fab, either Globalfoundries’ Fab 8 in New York or IBM’s 300mm (12-inch) chip plant – B323, also located in the same city – should be more favorable choice for Apple than any other fabs, said Chai.”

As you can see, Chai does not feel that Apple should consider this option any further. The potential reward is outweighed by the potential drawbacks.

Does this mean Apple will decide against this in the many years to come? Of course not. If we know one thing to be true about Cupertino, it is that secrecy is top priority. We likely wouldn’t know about this move until Apple actually announces the information to the public.

Here is more on why Apple Inc. (NASDAQ:AAPL) could at least be considering this:

“Owning a fab will definitely give Apple greater control over its supply chain and help shorten time-to-market as a result of an integrated design and manufacturing approach, in addition to ensuring a steady supply of mobile chips during periods of high demand, Chai indicated. Nevertheless, these benefits will only exist when the fab is able to produce advanced chips in commercial volumes.”

It makes sense that Apple would be looking to gain greater control over its supply chain, especially since the company has faced some issues with this over the past year.

This Apple Inc. (NASDAQ:AAPL) rumor is definitely worth keeping an eye on.