Apple to drop Broadcom, Qualcomm chips by 2025

Apple to drop Broadcom, Qualcomm chips by 2025

Business news |
By Peter Clarke

Apple is set to drop the use of key Broadcom and Qualcomm ICs from its smartphones by 2025, according to a Bloomberg report.

In recent years Broadcom has provided Apple with a “combi” chip that integrates Wi-Fi and Bluetooth functions. Qualcomm provides cellular modem chips to Apple. Bloomberg said Apple is designing its own RF chip that would combine the cellular modem with the Wi-Fi and Bluetooth functions. Apple uses Qualcomm’s X65 5G modem in the iPhone 14 and an updated version of the chip is expected to be used in the iPhone 15.

The exlcusion of Broadcom and Qualcomm chips is in line with Apple’s policy of developing more IC designs in-house. It has moved away from Imagination where it previously obtained graphics processing IP and has started using in-house designed processors rather than buying processors in from Intel. Apple also acquired a PMIC design group from Dialog Semiconductor. Dialog was subsequently acquired by Renesas Electronics.

Apple is reportedly responsible for about 20 percent of Broadcom’s and Qualcomm’s annual revenues. In Broadcom’s case this would represent about $7 billion out of sales revenue of $33 billion in the financial year ended October 31, 2022. The loss of the combi chip sales could hit Broadcom with between $1 billion and $1.5 billion in lost annual revenue, according to reports.

Related links and articles:

Dialog confirms takeover talks with Renesas

Analysis: Dialog finds a better way out from under Apple

Apple dumping Imagination GPUs


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