2025 iPhones to Feature Apple’s Own Wi-Fi and Bluetooth Chip

Apple is on track to revolutionize its product ecosystem by introducing an in-house Wi-Fi and Bluetooth chip in 2025, aiming to strengthen its self-reliance on core hardware components, Bloomberg is reporting.

The development marks a significant shift from the company’s reliance on industry leader Broadcom, which currently supplies these wireless components.

This new chip, internally referred to as “Proxima,” has been in the works for years and represents a milestone in Apple’s hardware innovation strategy. Manufactured in partnership with Taiwan Semiconductor Manufacturing Co. (TSMC), it is expected to debut in Apple’s smart home devices in late 2024 or early 2025 before rolling out to iPhones, iPads, and Macs.

According to the report, the initial products to incorporate the technology may include updates to the Apple TV set-top box, HomePod Mini, and potentially a rumoured smart home hub with AI capabilities.

The Proxima chip is poised to elevate Apple’s ecosystem by enabling more energy-efficient connections and deeper integration among its devices. The adoption of newer standards like Wi-Fi 6E and potential support for future technologies may further enhance connectivity speeds and reliability.

However, experts note that challenges remain. As a first-generation chip, Proxima may face hurdles in matching the performance and reliability of Broadcom’s established solutions.

Meanwhile, Broadcom is anticipated to lose a key portion of its revenue as Apple shifts away from its chips, with Apple currently accounting for nearly 20% of Broadcom’s earnings. However, Broadcom will continue to supply other components like radio frequency filters for the next several years.

Following the announcement, Broadcom shares dipped by nearly 4%, while Apple’s stock rose slightly, reflecting the market’s reception to this significant industry move.