When Apple
bought chip design firm PA Semi in 2008, it seemed like a crazy
move. Who’d want to go back to the days when giants like IBM did
everything themselves, including making software, hardware and chips?
Now, in the age of smartphones and tablet computers, Apple has what it
needs to control its own destiny. It’s starting to look crazy like a
fox. And rivals like Google are following Apple’s lead.
“Apple is the new IBM, and everyone wants to be like Apple,” said Rob Enderle, an analyst at the Enderle Group.
The strategy is called vertical integration, and it’s hot again in Silicon Valley. Technology giants that once focused on software or Web services — one horizontal layer of the technology stack — are now acquiring chip designers in order to differentiate themselves from the pack and disrupt their competitors.
To read the full, original article click on this link: Why tech giants are putting the silicon back in Silicon Valley | VentureBeat
Author: Dean Takahashi
