Apple nears switch to in-house Bluetooth, Wi-fi chips in iPhone, moving away from Broadcom

The chip, code-named Proxima, has been in development for several years and is now slated to go into the first products in 2025

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An iPhone display seen inside India’s first Apple retail store in Mumbai on April 17, 2023. Photo: Reuters

Published: 11:15am, 13 Dec 2024

Apple’s ambitious plan to create in-house components for its devices will include switching to a home-grown chip for Bluetooth and Wi-fi connections starting next year, a move that will replace some parts currently provided by Broadcom.

The chip, code-named Proxima, has been in development for several years and is now slated to go into the first products in 2025, according to people familiar with the matter. Like Apple’s other in-house chips, Proxima will be produced by partner Taiwan Semiconductor Manufacturing Company.

The transition is separate from Apple’s highly anticipated shift from Qualcomm Inc. cellular modems – details of which Bloomberg News reported last week – but the two parts will eventually work together.

Apple’s goal is to develop an end-to-end wireless approach that is tightly integrated with its other components and more energy-efficient, said the people, who asked not to be identified because the initiative has not been announced. Representatives for Cupertino, California-based Apple and Palo Alto, California-based Broadcom declined to comment.

Shares of Broadcom fell as much as 3.9 per cent to US$175.99 after Bloomberg News reported on the transition. Apple rose less than 1 per cent to US$248.53 as of 1.23pm in New York.

Apple is one of Broadcom’s biggest customers, accounting for roughly 20 per cent of revenue. Broadcom is scheduled to report its latest quarterly results after the market closes Thursday.

The two new components mark a major breakthrough for Apple’s hardware technologies group. That team, led by senior vice-president Johny Srouji, previously created the main processors for iPhones, iPads and Mac computers.