In a move that will see it replacing some parts currently provided by Broadcom, Apple is believed to be in the midst of switching to an in-house Bluetooth and Wi-Fi connection chip for its devices starting next year.
The chip, code-named Proxima, has been in development for several years and is now expected to go into the first products in 2025, reported Bloomberg. It will be produced by TSMC.
The transition is reported to be a result of Apple’s efforts to make its components more energy-efficient. Apple would also have control over how devices connect to cellular networks and Wi-Fi hubs, which should give it more control over the user experience and even help in hardware advancements including possibly thinner iPhones and wearable technology.
Apple is expected to begin rolling out the combined Wi-Fi and Bluetooth chip as part of new home devices scheduled for next year, including updated versions of its TV set-top box and HomePod mini smart speaker.
The chip will also likely debut in its next generation of iPhones, and to the iPad and Mac by 2026.
Apple’s move towards installing its own chips will be a blow for Broadcom. Apple is one of Broadcom’s biggest customers, accounting for nearly 20 per cent of revenue.
For the current quarter, Broadcom has predicted sales of $14.6 billion (A$22.91 billion), an increase of 22% from the prior-year period. For the fiscal year 2024, its revenue grew 44% year over year to a record $51.6 billion (A$80.97 billion).
Apple’s move to using its own chip will not be without risk. The chip is critical to the operation of Apple devices as it allows them to get online via wireless networks and pair with other devices such as headphones or speakers.
Broadcom has several years of expertise in creating that chip, and Apple’s first-generation Wi-Fi chip may face teething issues.
Apple’s own chip though may allow it to synchronize data more quickly as it makes a bigger push into the home ecosystem with a rumoured AI-powered home hub device as well as its own security cameras.
