AWS cannot control the software it runs, but it can still benefit from having its own CPU by reducing power consumption and thus increasing capacity of its data centers. And maybe that also introduces a new form of customer lock-in.
Optical stocks are volatile even in the best market conditions. Someday they will find their value, but it is going to be hard to determine when that will be.
The optical industry is plagued by manufacturing and packaging obstacles, but may finally be closing in the Holy Grail of Silicon Photonics. This time is totally different….
Much of modern technology is built on the idea of abstracting different layers of systems so that they can operate independently. For semis, the pendulum is now swinging back the other direction towards less abstract, custom chips.
A recap of our emerging thesis on the changing nature of compute and what that means for semis companies large and small.
There probably will not be thousands of companies designing their own chips – the upfront costs are just too prohibitive – but there will be enough to mark a major shift for the industry.
By our count 28 non-chip companies are developing their own chips. Of these, at least 16 have delivered multiple generations of their chips, signaling a long-term commitment.
Google is promoting the growth of open source tools for designing semis. The science fiction version of this story leads to everyone designing chips, the reality is going to be much narrower, but still means many more companies designing their own semis.
The markets are terrible. Moore’s Law is slowing. 6G is distant. But we are actually optimistic. Solutions exist for building compelling, complex systems. All that is missing is imagination and a bit of capital.
The shift from general purpose silicon to semi-custom and tailored SoCs presents a big opportunity for chip start-ups. If they follow a few simple rules.