Apple to switch to in-house Bluetooth and Wi-Fi chips for iPhone

Apple is set to transition to a custom-built chip for Bluetooth and Wi-Fi functionality in its devices starting next year, marking a significant shift away from components currently supplied by Broadcom. The move, as per reports, is part of Apple’s broader strategy to reduce reliance on third-party suppliers for key hardware components.

The new chip, code-named Proxima, has been in development for several years and is expected to debut in 2025, first appearing in the next generation of iPhones and smart home products. According to reports, Apple’s in-house chips will be manufactured by Taiwan Semiconductor Manufacturing Co. (TSMC), which has long been a key partner in producing Apple’s semiconductor components.

This shift follows Apple’s ongoing efforts to bring more of its hardware production in-house. At its developer conference in June, the company revealed plans to use its own server chips to power artificial intelligence features across its devices. This initiative is distinct from Apple’s upcoming cellular modem chips, which are expected to replace Qualcomm’s components in future iPhones. Although the two types of chips will function independently, they are likely to work together in future device designs, according to reports.

In addition to these plans, Apple is collaborating with Broadcom on a new server chip, codenamed Baltra, which is designed to accelerate AI processing. This new server chip will help Apple strengthen its capabilities in AI and machine learning, areas in which it has been increasing its focus. Despite these in-house developments, Apple, like other tech giants, has faced challenges in reducing reliance on Nvidia’s GPUs, which remain in short supply and are critical for powering demanding AI applications.

This shift in Apple’s chip development strategy also follows a multi-billion-dollar deal with Broadcom last year to develop 5G radio frequency components, further signalling the complex nature of Apple’s relationships with its suppliers.