UPDATE 3-Apple to replace key Broadcom chip with in-house design

(Adds Qualcomm statement and details.)

Jan 9 (Reuters) – Apple will use its own Broadcom chips in its devices in 2025, Bloomberg News reported, citing people familiar with the matter. The plan is to replace it with

As iPhone makers work to limit their reliance on other chip makers, they migrate their line of chips for recent model Mac computers to their own line, supplanting Intel’s.

Bloomberg News reports that Apple plans to replace Broadcom’s Wi-Fi and Bluetooth chips, adding that Apple is the US chipmaker’s largest customer.

The Cupertino, Calif.-based company accounts for approximately 20% of Broadcom’s revenue.

Apple’s decision is likely to hit Broadcom’s revenue by about $1 billion to $1.5 billion, said Stacy Rasgon, an analyst at financial services firm AB Bernstein.

However, Broadcom’s radio frequency (RF) chips are complex to design and manufacture and unlikely to be replaced in the short term, he added.

Broadcom shares closed 2% lower.

Apple and Broadcom did not immediately respond to Reuters’ request for comment.

According to the report, Apple is also looking to replace Qualcomm Inc’s cellular modem chips with its own by the end of 2024 or early 2025.

Qualcomm says it believes Apple will phase out its chips. According to Jefferies analyst William Yang, Apple is using Qualcomm’s X65 for his 5G modem in the iPhone 14 line, and a new version of the same chip for the iPhone 15 model likely to be released later this year. version will be introduced.

A Qualcomm spokesperson said in a statement the company issued in November that it expected “a minimal contribution from Apple product sales in 2025.” (Reporting by his Yuvraj Malik of Bangalore and Stephen Nellis of San Luis Obispo County; Editing by Krishna Chandra Eluri and Sherry Jacob-Phillips)

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