Apple hardware execs discuss 'profound' changes in chip business

Apple hardware execs discuss ‘profound’ changes in chip business

technology By Dec 25, 2023 No Comments

Apple Hardware Execs Discuss ‘Profound’ Changes in Chip Business

In a recent interview with Apple’s hardware executives, Johny Srouji and John Ternus, CNBC discussed the company’s significant shift towards in-house chip design and production. This change is considered the most profound for Apple in the last two decades.

Embracing In-House Chip Design

John Ternus highlighted the transformative nature of bringing chip and component design in-house, marking a shift from previous reliance on external technologies. The move allows for greater product optimization and innovation.

Ternus emphasized how Apple no longer feels constrained by external limitations, enabling the company to design products that are fully optimized for their intended purpose.

This transformation has been particularly significant in the realm of silicon production, allowing Apple’s designers greater freedom without compromising their creative vision.

Customer Awareness and Concerns

There was a discussion about whether the average Apple consumer is aware of the origin of the chips incorporated in the company’s products and whether it matters to them.

Johny Srouji stated that customers indeed recognize and care about the source of the chips, praising Apple‘s world-class chip team and the collaboration that supports the creation of silicon exclusively tailored for Apple products.

The use of in-house chips has not only enhanced design and production capabilities but also maintained focus and quality in the final products.

Partnership with TSMC

A key aspect of the interview delved into Apple‘s partnership with chip manufacturer TSMC. The executives addressed concerns regarding production capacity and the firm’s plans for diversification.

Johny Srouji expressed confidence in TSMC’s scale and capability to meet Apple‘s production volume demands, indicating that the partnership has been central to Apple‘s success in delivering superior chips.

He also stressed the necessity of access to advanced technology and a collaborative partner that aligns with Apple‘s objectives and reliability criteria.

Geopolitical Implications

The interview touched upon geopolitical tensions and their potential impact on chip production, especially in Taiwan. While Srouji refrained from disclosing specific future plans, he emphasized the importance of strategic planning and careful consideration in such situations.

He acknowledged the value of diversification in chip production but underlined the need for partner alignment with Apple‘s standards and requirements.

Srouji also revealed that Apple continuously explores options and remains open to collaborating with other foundries that meet the company’s high standards and capacity needs.


Overall, the interview shed light on the monumental shift within Apple‘s chip business and the broader implications of in-house design and production. The company’s relentless pursuit of innovation and commitment to superior product quality were evident throughout the discussion.

Source: appleinsider

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