Source: in 2023, Meta abandoned plans to build its own custom chips for its AR glasses, instead opting to rely on third-party chipmakers like Qualcomm
Kali Hays / Fortune :
Context & Ripple Effects
Meta’s reported decision extends an earlier pattern: it had already selected Qualcomm for a later Ray-Ban smart-glasses version after struggling with an internal chip effort, as described in its earlier Qualcomm selection.
The AR-glasses program has been progressing through constrained, developer-focused hardware rather than broad release: Meta planned only about 1,000 first-generation units and had said Orion would be distributed exclusively to developers. A later MediaTek partnership for AR-glasses chips also indicates that Meta’s supplier strategy was not limited to one vendor.
First-order effects
- Meta stops pursuing a proprietary AR-glasses chip and instead must integrate third-party silicon into its glasses roadmap, including Qualcomm components.
- Qualcomm gains a clearer role in Meta’s AR hardware supply chain, while Meta’s custom-chip effort no longer serves as a differentiator for this product category.
Second-order effects
- Third-party chipmakers have stronger incentives to compete for Meta’s AR designs on integration, power efficiency, and product support; MediaTek’s existing partnership makes it a relevant alternative supplier.
- Meta’s hardware teams can concentrate on the device systems that remain in-house, but product timing and capabilities become more tied to merchant-chip roadmaps.
Third-order effects
- The move points to a split AR-hardware model in which companies may reserve custom silicon for products with sufficient scale while relying on specialized suppliers for earlier or lower-volume devices.
- If this approach persists, the AR-glasses chip market could consolidate around suppliers able to offer complete, reusable platforms, reducing the number of device makers that attempt bespoke silicon.
The trend: AR glasses are becoming a test of whether emerging-device makers can reach viable scale with merchant silicon before investing in custom chips.