Apple nears switch from Broadcom components for iPhone, home wireless chip- Bloomberg

Apple (NASDAQ:AAPL) is planing to replace Broadcom (NASDAQ:AVGO) components with its own in-house chips for Bluetooth and Wi-Fi connections starting next year, reported Bloomberg on Thursday.

The chip, code-named Proxima, has been in development for several years and is now slated to go into the first products in 2025, the report said, citing people familiar with the matter. Proxima will be produced by partner Taiwan Semiconductor Manufacturing Co. (TSM), it added.

Apple and Broadcom did not immediately respond to a request for comments.

Cupertino, Calif.-based Apple is aiming to develop an end-to-end wireless approach that is tightly integrated with its other components and more energy-efficient, the report said.

Even though Apple’s move will displace Broadcom’s combined Wi-Fi and Bluetooth component in Apple devices, the supplier will still provide a part known as a radio frequency filter for modems, reported Bloomberg.

Shares of Apple were up 0.8% in afternoon trading on Thursday, while Broadcom was down nearly 2%.

According to an earlier report by The Information, Apple is also working with Broadcom to develop the company’s first in-house server chip exclusively designed for artificial intelligence. Apple is one of Broadcom’s biggest customers.