Apple (AAPL) has reportedly developed its own custom microchip for Bluetooth and Wi-Fi connections that will be added to its consumer electronics devices such as the iPhone.
Bloomberg News is reporting that Apple plans to begin phasing out some parts that are currently supplied by third-party chipmakers such as Broadcom (AVGO).
The Bluetooth and Wi-Fi chip, code-named “Proxima,” has been under development for several years and is now slated to go into iPhones and iPads produced in 2025.
The iPhone maker’s newest microchip will be manufactured by Taiwan Semiconductor Manufacturing Co. (TSM).
This is the latest example of Apple moving to develop its own processors.
In June of this year, Apple’s management team said that they plan to use their own in-house server chips to power artificial intelligence (A.I.) features on their various devices.
Apple is also planning to launch a series of cellular modem microchips in 2025 that will replace components it currently sources from Qualcomm (QCOM).
The move to design its own processors comes as Apple finds it increasingly difficult to source Nvidia’s (NVDA) expensive and scarce microchips.
Other technology companies, including Meta Platforms (META) and Alphabet (GOOGL) have announced plans to develop their own microchips to power A.I. products.
Apple’s stock has risen 34% this year to trade at $247.96 U.S. per share.
