Google to Manufacture Server Chips In-House... Transfers Design Rights to TSMC
[Asia Economy Reporter Lee Ji-eun] Google has decided to produce server chips (server semiconductors) independently and is reported to have transferred the design rights of the server chips to Taiwan's TSMC, the world's largest foundry (semiconductor contract manufacturer).
On the 15th, Taiwan's Taiwan News, citing the industry-specialized media 'The Information,' reported that Google handed over the design rights for contract manufacturing of server chips to TSMC in order to compete with web hosting giant Amazon Web Services (AWS). Web hosting refers to the business where large telecommunications companies provide or lease web servers to individuals or companies. Since customers share a single server, it has the advantage of reducing server rental costs from a corporate perspective. The Information predicted that Google will soon realize its plan to produce its own customer chips and build a web hosting system. Currently, Google purchases its customer server chips from existing semiconductor manufacturers such as Intel and AMD. AWS, which is currently in competition with Google, produces its own customer server chips, giving it a cost advantage in the web hosting business.
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According to The Information, the server chip for which Google transferred design rights to TSMC for trial production is known as 'Maple.' Maple is one of the two server chips that Google will produce by transferring design rights to TSMC. The other server chip is 'Cypress,' which is planned to be outsourced to TSMC for production in the second half of this year. Taiwan News stated, "Google's decision to produce server chips independently is related to the recent trend of big tech companies producing server chips independently, including those for personal electronic devices and web hosting."
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