Google is assembling a new team to create computer chips for its phones. This team is located in Bengaluru, India, and they will later be constructing a semiconductor manufacturing site in Karnataka, a state in south India. The new team currently consists of 4 recruiters and 16 engineers, and it will be growing as time goes on.
To create this team, Google is hiring engineers that are from several traditional manufacturing companies such as Nvidia, Qualcomm, and Intel. For the last 10 years, companies such as Google and Apple have been making attempts to stop relying on other manufacturers for their chips, instead creating their own chips like the Apple A4 processor. Google already designs its own interface and AI chips, and Amazon, Microsoft, and Facebook have also started doing the same.
All of these companies attempting to be unreliant on chips made by other companies could hurt Silicon Valley. Apple’s relationship with Qualcomm has slowly been deteriorating due to several lawsuits that they have filed against each other. For example, in 2017, Apple attempted to sue Qualcomm for “alleged anti-competitive practices” due to the cost it was charging for crucial components on iPhones, such as the modem, which allows the phones to connect to the Internet. Eventually, Qualcomm chose to countersue against Apple and in the years following the two companies have been having numerous legal battles. Apple soon decided to switch to Intel to design and manufacture their modems.
Apple’s experience with Qualcomm is one reason why large tech companies are making the choice to manufacture chips themselves instead of using another company such as Qualcomm or Intel to do it for them. Google also plans to stop making use of Qualcomm's Snapdragon processors for their phones in the near future.