Apple is bringing more wireless chip production in-house

Apple is working on bringing wireless chip production in-house, as per a new report. These chips would include the ones that are currently made by Broadcom, Skyworks, and Qualcomm.

Bloomberg reports that Apple is hiring engineers for a new office in Irvine, Southern California that would work on wireless chips, which in turn would remove the company’s dependency on suppliers like Broadcom and Skyworks Solutions. The criteria for hiring these engineers seems to be experience in modem chips and wireless semiconductors

Apple 2021 iPad Pro 5G

Apple is working on reducing reliance on wireless chip makers like Broadcom and Qualcomm

As per the report, not only is Apple aiming to make its own components, but it is also trying to expand its satellite offices into more places. This will help the company reach talent where they are located, especially those that would not want to move to Silicon Valley. However, Apple also recently delayed its return-to-office plans for corporate employees.

The Irvine office will primarily work on components used for wireless communication including Bluetooth and Wi-Fi. These components could be used in a wide range of Apple products, including iPhone, Apple Watch, Macs, and others.

Apple already has experience in making custom chips for AirPods, Apple Watch, and iPhone, which are H1, S1, and U1 chips, respectively, but this effort could mean that the company could replace more wireless silicon that is currently made by Broadcom, Skyworks, and Qualcomm.

As expected, this report has caused stocks for Broadcomm, Skyworks, and Qualcomm to fall by 4%, 11%, and 4%, respectively. This has become a tradition now for vendors when news of Apple reducing its reliance on them makes the rounds.

It is already well known that Apple is working on its own cellular modem to replace Qualcomm’s modem in iPhone and iPad, in a few years. Since 2018, Apple has been recruiting engineers for this effort. The company also bought Intel’s modem business in 2019 for $1 billion, which will also help towards this effort.

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