Apple almost ready to switch to in-house Bluetooth and WiFi modem for iPhone, smart home

Apple is gearing up to replace Broadcom’s components with its own in-house Bluetooth and Wi-Fi chips, code-named Proxima, starting in 2025. The move aligns with Apple’s strategy to bring more of its chip production under its roof.  

These custom-designed chips are set to debut in future iPhones and smart home devices, with Taiwan Semiconductor Manufacturing Co. or TSMC taking the reins on production. By designing its own connectivity chips, Apple aims to optimise performance and streamline integration across its ecosystem, reinforcing its commitment to reducing dependency on external suppliers.

Cellular modems and a fully integrated ecosystem

Simultaneously, Apple is advancing its plans to release its long-awaited cellular modem chips in 2024, marking another step in phasing out reliance on Qualcomm. While the Bluetooth, Wi-Fi, and modem chips are being developed as separate projects, they are expected to eventually work in tandem. This integrated approach would give Apple greater control over device connectivity, ensuring better performance and energy efficiency.

This shift is part of Apple’s broader vision to take full ownership of critical technologies, reducing exposure to external supply chain disruptions while driving innovation at its own pace. Qualcomm and Broadcom have been long-standing partners, but Apple’s push for independence reflects its focus on maintaining a competitive edge.

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Boosting AI hardware capabilities

Beyond connectivity, Apple is making strides in AI-powered technology with its in-house server chip, code-named Baltra, which is being developed in collaboration with Broadcom.  

These AI-focused chips aim to support compute-heavy features on Apple devices, positioning the company as a leader in artificial intelligence. This initiative highlights Apple’s challenges in sourcing Nvidia’s high-performance yet costly processors, prompting it to explore alternatives.

Apple’s in-house chip strategy represents a significant leap toward self-reliance and innovation. By consolidating design and production, the company is poised to enhance performance, reduce costs, and build an ecosystem that offers seamless connectivity and cutting-edge features. This strategic move underscores Apple’s commitment to controlling its future while reducing reliance on third-party suppliers.