Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

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).

Apple Inc. (AAPL)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.

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.