Apple Inc plans to replace a Broadcom Inc chip from its devices with an in-house design in 2025. The iPhone maker has been working to limit its dependence on other chipmakers, replacing Intel with its own line of chips for recent models of its Mac computers.
The tech giant accounts for about 20% of Broadcom’s revenue. Apple’s decision is said to hit Broadcom revenue by about $1 billion to $1.5 billion. Apple is also looking to swap out Qualcomm Inc’s cellular modem chips with its own by the end of 2024 or early 2025.
Qualcomm has said it believes Apple will phase out its chips. Apple uses Qualcomm’s X65 for 5G modem in its iPhone 14 line and is expected to deploy a newer version of the same chip in the iPhone 15 models likely to be released later this year.
Broadcom still supplies Apple with other components — including radio-frequency chips and ones that handle wireless charging — though the iPhone maker has been working on customising those parts as well. Broadcom Chief Executive Officer Hock Tan expressed confidence that his company will maintain its foothold at Apple. He said, “We believe we have the best technology and delivering value to our customers. There’s no reason to find something else where you’re not the best.”
