AppleInsider | Custom Apple A4 iPad chip estimated to be $1 billion investment

What’s the point of licensing computer chip designs from another company if it costs about the 1/3 the price of building it yourself? That seems like a rhetorical question, but I always assumed that people who licensed technology from ARM holdings were aiming to save tons of money compared to fabricating the chips themselves. So how does the Apple iPad A4 cpu figure into this? Well it’s a custom CPU, but according to NYTimes creating a new cpu is serious business.