Apple Plans Transition to In-House Bluetooth and Wi-Fi Chips

Apple is moving forward with plans to develop its own chips for Bluetooth and Wi-Fi connections across its devices. This transition is expected to start next year, with the shift aiming to reduce dependency on parts currently supplied by Broadcom, according to a report from Bloomberg News.

The new chip, which has been referred to by the code name Proxima, has been in development for several years. It is anticipated that the first iPhones and smart home devices using this in-house technology will be introduced in 2025.

As part of this initiative, the in-house chips will be manufactured by Taiwan Semiconductor Manufacturing Co. This move comes as Apple aims to enhance its technological capabilities and reduce reliance on external suppliers.

Integration with AI Technologies

During its annual developer conference held in June, Apple shared plans to implement its proprietary server chips aimed at improving artificial intelligence features in its devices.

This initiative is distinct from Apple's other project to launch its anticipated cellular modem chips next year, which are meant to replace components supplied by its long-standing partner, Qualcomm. Despite being separate, both the Bluetooth/Wi-Fi chip and the cellular modem chips are intended to work cohesively within Apple’s ecosystem.

Collaborations and Challenges in Chip Development

Apple has also been collaborating with Broadcom to create its first server chip, internally referred to as Baltra, which is specifically designed to handle AI processing tasks. This reflects Apple's ongoing efforts to develop chip technology internally, although the company, akin to other major tech firms, faces challenges in moving away from expensive and limited supply processors from Nvidia.

Last year, Broadcom solidified its relationship with Apple by signing a substantial multi-billion-dollar deal to develop 5G radio frequency components, highlighting the tight-knit yet evolving nature of Apple's partnerships in the tech supply chain.

Apple, Wi-Fi, chips