Skip to main content

Technology

Custom Silicon

Bespoke chip designs created by tech companies for their specific hardware and software ecosystems.

206 companies

Explainer

Custom Silicon explained

Custom silicon means a company designs its own chips for its own products or data centers instead of buying standard parts. The chip is made by a foundry such as TSMC, but the design belongs to the customer.

Well-known examples include Apple's M-series and A-series chips, Amazon's Graviton, Trainium and Inferentia, Google's TPU and Axion, and Microsoft's Maia and Cobalt. Companies such as Broadcom, Marvell and Alchip offer design services to firms that do not do the whole job themselves.

How it differs from the usual approach

A standard chip is made for many customers, so it is general. A custom chip is tuned to one company's software, which can improve efficiency and cost and reduce dependence on a supplier. The price is a large engineering team, years of lead time and the risk that the design misses its target. This is why custom silicon is used mainly by very large buyers.

Where it is used

  • Cloud providers designing server CPUs and AI accelerators for their own data centers.
  • Phone and laptop makers designing their own system-on-chip.
  • Car makers designing driver-assistance computers.
  • Network and storage vendors building dedicated controllers.
  • AI labs commissioning chips for their own models.

What to watch

  • Apple moved the Mac line from Intel to its own chips beginning with the M1 in November 2020.
  • Microsoft announced its Maia AI accelerator and Cobalt CPU in November 2023.
  • Large AI developers have been reported to explore their own chips to reduce reliance on a single supplier.
  • Chiplets and standard interfaces make custom designs cheaper by reusing existing parts.

Frequently asked questions

Why do companies design their own chips?

To fit the chip to their own software, lower cost at large scale, improve energy efficiency and avoid depending on one supplier. It only pays off at high volumes.

Do these companies manufacture the chips themselves?

Usually not. They design the chip and a foundry, most often TSMC, makes it. Design partners may help with the physical layout.

What is the difference between custom silicon and an ASIC?

Custom silicon describes who the chip is for: a single company. An ASIC describes what it is: fixed-function hardware. A custom chip for a cloud provider is often both.