Semiconductor industry and market

What is it called when large cloud providers and the like design their own chips specialized for AI processing and other tasks for their data centers and have them made by foundries?

  1. ASecond sourcing
  2. BThe silicon cycle
  3. CCustom silicon (in-house designed chips)
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Answer: C. Custom silicon (in-house designed chips)

Companies running large data centers increasingly design (alone or with design partners) AI accelerators, CPUs and other chips optimized for their own services and outsource manufacturing to foundries. The aims are higher performance and power efficiency than general-purpose products and lower procurement costs.

  • A. Second sourcing means being able to procure equivalent parts from multiple suppliers.
  • B. The silicon cycle is the cycle of market booms and busts.
  • C. Correct. These are chips designed for the company's own uses.
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More Semiconductor industry and market questions

  1. Which law, enacted in the US in 2022, provides large subsidies and more for domestic semiconductor manufacturing and research and development?
  2. Which Japanese company, founded in 2022, aims to mass-produce 2 nm-generation leading-edge logic chips in Chitose, Hokkaido?
  3. Fabs place particular emphasis on keeping tool utilization high. Which is an appropriate reason?
  4. Which organization, made up of major semiconductor makers worldwide, publishes statistics and forecasts of semiconductor market shipments?
  5. Which international industry association, whose members include makers of semiconductor manufacturing equipment and materials, develops industry standards and holds the SEMICON exhibitions?