Apple-SoCs

Apple creates a team to manufacture wireless chips in-house. While the company uses chips, Broadcom and Skyworks Solutions, but seeks to reduce dependence on external suppliers.

According to the latest report from Bloomberg, Apple plans to open a new office in Southern California and hire dozens of engineers. The job listing indicates that Apple is looking for people with experience with modem chips and other types of wireless semiconductors.

The publication notes that Apple, and especially its iPhone product, is a key source of revenue for chipmakers. In early 2020, Apple and Broadcom reached a $15 billion chip supply agreement that ends only in 2023. 

Apple accounts for about 20% of Broadcom’s sales, according to data compiled by Bloomberg. Chipmaker Skyworks is even more dependent on Apple, which accounts for nearly 60% of the company’s revenue.

The announcement of the expansion has created nervousness in the stock market. The courses of Qualcomm and Broadcom shares fell by over four percent each, Skyworks share price even by eleven percent. The competition will likely lose a significant part of their business if Apple actually uses its own wireless chips at some point.

In recent years, Apple has initially built its own chips for its smartphones. The A-series SoCs are the most powerful mobile SoCs year after year and easily beat the competition in the benchmarks. Since the end of 2020, Apple has also been using its own chip in notebooks.

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