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Will Vertical Integration in Mobile Shut Processor Vendors Out?

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t.alex
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Supply Network Guru
Re: Mobile Processors
t.alex   10/26/2012 8:42:13 PM
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In fact these can be done by third party vendors, which can be more cost effective. Vertical integration will bring in more control and flexibility.

chipmonk
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Production Synthesizer
Mobile Processors
chipmonk   10/24/2012 1:05:48 PM
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are called SoCs or System on Chip because they contain on that single 10 mm or so sq. chip many different functional block e,g. the CPU ( frequently from ARM ), GPU, control & interface with Baseband  & Camera , cache memory, I/O interfaces, .. Well you get the idea. To increase the capablity of any particular function e,g. Graphics more blocks for it can be added on the same chip.

Having this flexibility gives system vendors to mix and match functions to make their product unique. Design houses do it for them.

But when it comes to manufacturing these chips there are some fixed Tooling costs like Masks for Wafer Fabs that may run into $ 20 million per chip Design.

The industry is trying to figure out these conflicting trends

t.alex
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Supply Network Guru
Re: Intel and end products
t.alex   10/22/2012 10:39:21 AM
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In fact If the quantity is not huge enough, going for off the shelf solution like Intel's is more cost effective. Vertical integration is only for big and big quantity player.

t.alex
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Re:
t.alex   10/22/2012 10:36:57 AM
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Sometime back major phone makers seemed to consider processor as commodity and focused mainly on OS and software apps. Now it's no longer the case. They have to differentiate themselves from grounds up.

Tam Harbert
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Blogger
Re: Intel and end products
Tam Harbert   10/19/2012 4:55:34 PM
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It will be interesting to see how/whether Intel and other processor vendors handle the shifts in the industry. We should keep our eyes on Intel, AMD, Qualcomm, Broadcom. Others?

prabhakar_deosthali
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Supply Network Guru
Re:
prabhakar_deosthali   10/19/2012 6:11:57 AM
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With  the kind of vertical integration that the companies like Google are adopting, may be the processor vendors will have to follow the same suit by building products around their processors, themselves. 

Microsoft has already taken the cue with Surface , not wanting to remain just a software company.

May be Intel will follow with similar moves.

Barbara Jorgensen
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Blogger
Vertical integration...
Barbara Jorgensen   10/18/2012 3:45:38 PM
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I found this blog fascinating. It capped off a trend tht I've been noticing of companies really busting out of their traditional business models. Amazon got into hardware with the Kindle, but at an arm's-length. It outsourced everything, correct? (I may be wrong about that). Buying a chip business is a big leap, but logical if you follow the vertical integration model...start with a great chip and work your way up. It will take too long to recreate the wheeel--I don't think amazon will go full-factory--but I do think vertical integration has some IP and cost-related advantages.



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