Why do OEMs want to make their own chips? - Insurance Finances

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On the smartphone market today there are many different types of chips. However, only a few types of chips are truly outstanding, trusted by users because of their high stability, great performance, and power savings, such as Apple's A-chip and Qualcomm's Snapdragon.
There are many OEMs making their own chips, but no one company has been able to beat the other two big companies. And recently, Xiaomi has been racing to make its own chips. So the question here is:
What are the benefits of manufacturing a separate chip that OEMs want to follow?
Read more:

#first. The current popular Chip line

Snapdragon is a chip from Qualcomm, semiconductor tycoon, meet all the needs of technology, connectivity, power consumption, camera, performance, ... for every segment of Android smartphones.
It has become the benchmark for comparison with chips from other OEMs and even Apple's A chip. And Qualcomm doesn't make phones, they just focus on researching and manufacturing chips for other OEMs.
And Apple has children chip A of the super divine series: the ability to handle bad graphics, good battery saving, perfect compatibility with iOS, can customize the structure and use for both iPhone, iPad and Macbook, low core, low clock speed but terrifying performance, .... And perhaps Apple is the most successful OEM in making its own chips.
Samsung has Exynos chip also covers all segments, but a lot of people hate because running forever Snapdragon will not catch up.
The Exynos 9825 used on the Galaxy Note 10 was disappointing when it handled gaming graphics weaker than the Snapdragon 835 that was released in 2017. At the same time, the Exynos chip has hardly any new technology compared to the corresponding Snapdrahon in the same year. . Bottom line is boring!
Huawei also Kirin chip, has high performance, impressive photography and video capabilities. Unfortunately for Huawei, it lost Google and the international market.

#2. What are the benefits of chip manufacturing?

Why does Xiaomi want to produce its own chips?
The first is for sale: Of course it is.
Instead of buying from Qualcomm, they can sell machines with their chips, and increase their sales a lot.
Next up: High potential for a breakout!
A lot of technology is on a chip that Android OEMs have been relying on Qualcomm for.
For example, Quick Charge technology, video recording in Super Slow Motion mode, 5G Modem, 3D fingerprint scanning, etc.
That is, if an OEM can create a chip with more innovative technology, they will have more resonance and easily change their segment or price range in the market. This is currently very meaningful to Xiaomi


3rd: Compatibility with your own device.
Apple A chip has few cores, big mechanism. LITTLE added late, but Apple machines are still strong, smooth, long-term, less hardware degraded. Xiaomi can do the same, if they want.
Finally: Self-made chips will reduce the dependence on other companies!
The flop called Snapdragon 810 is certainly an unforgettable sadness for quite a few brands, especially Sony.
Sony Xperia Z4 is as hot as a furnace, LG G4 uses Snapdragon 808 only 32bit instead of 810. Galaxy S6 is forced to use Exynos because of concern about faulty Snapdragon, .... So a homegrown chip is a savior when this happens again.
There are many other benefits when an OEM can produce its own chips ……

# 3. What about the disadvantage?

Surely there must be disadvantages to few companies do it, right 😛
First: Money!
As always. To make chips, companies need to buy ARM architecture. Next is the need for an R&D team to develop its own chip technology. Then, the company needs to build a production line ...
And to have that technology breakthrough, the amount of money that OEMs need to spend is huge. In short: anything you want needs money, more money to get.
Next: Too big a shadow of Snapdragon and Apple A at the moment.


It's not natural to be disappointed with Samsung's Exynos. Exynos' new chip is always the focus for users to compare with the chip from Qualcomm.
And similarly, Snapdragon also disappointed when compared to Apple's A chip. It means that the launch of a chip for its product to replace the purchased chip is very easy to be forgotten because the technology and the trust of users cannot be equal to the other two big players.

# 4. Conclude

Making a chip yourself for an OEM smartphone has never been easy, and it doesn't matter to users because the current chip market is enough for what they need. However, if you want to really break through and want to make a difference, this is an ideal move for companies.
Do you like OEMs developing their own chips? Leave your comments below the blog comment section!

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