Apple to use in-house wireless chips for future iPhones: reports
Apple is planning on dropping the use of chips manufactured by external suppliers, and instead will be using in-house wireless chips in iPhones from 2025, states a recent report by Bloomberg. This move will reportedly include excluding parts made by Broadcom Inc., which is currently one of Apple's biggest suppliers.
Bloomberg further reports that to prepare for the shift to homegrown components, Apple plans to release their first cellular modem chip by 2025. Apple's upcoming wireless chip will combine Bluetooth, cellular and Wi-Fi functionality into one design, which will save memory space and make future iPhone production easier, states reports.
Currently, the American semiconductor manufacturer Broadcom is reliant on Apple being their largest customer. Bloomberg states that in the previous fiscal year alone, Apple contributed to about $7 billion of Broadcom's revenue and 20% overall. Despite Apple not officially confirming the news yet, Broadcom's shares fell about 4.7% when this report went public.
Apple has already begun removing Intel processors from new Mac releases for in-house Apple Silicon chips. Changes are now reportedly coming to Apple's wireless chip components as well, which is expected to harm the semiconductor industry that depends on big names like Apple to produce chip components for them.