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A4: The Billion Dollar Chip?

23 February 2010 555 views No Comment

Reading through an article in the New York Times on why chipmakers must be focussing on smartphones to be part of the future, we got a piece of information about Apple’s A4 chip that powers the iPad: that its a billion dollar chip.

At the same time, Apple, Nvidia and Qualcomm are designing their own takes on ARM-based mobile chips that will be made by the contract foundries. Even without the direct investment of a factory, it can cost these companies about $1 billion to create a smartphone chip from scratch.

-NYTimes.com

Before Intel can get a firm leg in the game with its Atom chip, the ARM folks have figured out two important points, both critical for a smartphone chip: Power consumption and Price. The race to power the next gen mobile devices is definitely on, and in full speed.

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Apple's A4 chip that powers the iPad: that its a billion dollar chip. Even without the direct investment of a factory, it can cost these companies about $1 billion to create a smartphone chip from scratch. ">
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