Apple to reduce reliance on Broadcom in 2025 with own Wi-Fi chips: analyst

Apple (NASDAQ:AAPL) is likely to reduce its reliance on Broadcom’s (NASDAQ:AVGO) Wi-Fi chips next year, with a processor of its own, TF International Securities’ analyst Ming-Chi Kuo said on Thursday.

Broadcom shares fell 4.8% in early trading, while Apple was off 0.6%.

“With new products in 2H25 (e.g., iPhone 17), Apple plans to use its own Wi-Fi chips, which will be made by TSMC’s N7 process and support the latest Wi-Fi 7 spec,” Kuo wrote on the social media platform X. “Apple expects to move nearly all products to in-house Wi-Fi chips within about three years. This move will reduce costs and enhance Apple’s ecosystem integration advantages.”

Apple has worked on in-house Wi-Fi chips for years, but has run into technical snags trying to create them. Last year, Kuo said that Apple had halted work on the project “for a while,” with the decision made to prioritize its own 3 nanometer Apple Silicon.

The news is potentially large for Broadcom, as it generates a significant portion of its revenue from Apple.

Apple and Broadcom did not immediately respond to a request for comment from Seeking Alpha.

Apple is set to report fiscal fourth-quarter results after the close of trading. A consensus of analysts expect the company will earn $1.60 per share on $94.42B in revenue.