Apple to ditch Intel and work on custom Mac chips

Apple to ditch Intel and work on custom Mac chips

Apple is planning to use its own chips in Mac computers beginning 2020, replacing processors from Intel, a Bloomberg report said on Monday, citing people familiar with the matter.

In its March 18 report on Apple's secret microLED production facility, Bloomberg said the program represents "the latest example of Apple bringing the design of key components in-house".

Digitimes reported Tuesday that Apple is now working with Taiwan Semiconductor Manufacturing Company (TSMC) to produce micro LED panels for two new devices.

The decision would be a major blow to Intel, Apple's Mac chip supplier.

Intel is reliant on the world's largest technology company for around 5pc of its annual revenue and refused to "comment on speculation" regarding the loss of its biggest client.

U.S. imposes sanctions against Russian oligarchs close to Putin
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Thanks to the iPhone, Apple has been getting very good at silicon and aims to start using its own processors in Mac computers. Well, it's not just Apple but other companies like Microsoft are also implementing something similar but they will most likely stick to just the software aspect.

American Financial Network Advisory Services LLC cut its stake in shares of Apple (NASDAQ:AAPL) by 7.2% during the fourth quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC).

Insiders at the company told Bloomberg the strategy, codenamed Kalamata, will help all of Apple's devices, including iPhones and Mac computers, "work more similarly and seamlessly together". Shares dropped as much as 9% intraday but were able to recoup some of the losses to finish the regular trading session 6% lower. It was way back in 2010 that Steve Jobs himself, skinny as a rail, debuted the ARM-based Apple A4 chip alongside the then-new iPad in San Francisco.

Do you believe that Apple would push through with its plan to create its own Mac chips? Apple for example already uses its own chip (called the T1) in the Touch Bar equipped Macbook Pro that launched in October 2016. The company has had a virtual monopoly on the market for years, with the only serious competition coming from Advanced Micro Devices, better known as AMD. It was a partnership that shook up the PC industry and saw Apple shift away from chips co-developed by IBM and Motorola. The main goal of this initiative is to line up all of Apple's devices including the Mac, iPhones, and iPads. "We have better control over timing, over cost and over quality", Chief Financial Officer Luca Maestri said of Apple's chip efforts previous year.

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