Apple Plans to Develop Its Own Wi-Fi Chip, Sending Broadcom Shares Down

Apple Plans to Develop Its Own Wi-Fi Chip, Sending Broadcom Shares DownApple analyst Ming-Chi Kuo said on Thursday (October 31) that Apple may reduce its reliance on chipmaker Broadcom's Wi-Fi chips next year and launch its own processor. Kuo wrote on social media platform X, "Apple will plan to use its own Wi-Fi chips in new products (e

Apple Plans to Develop Its Own Wi-Fi Chip, Sending Broadcom Shares Down

Apple analyst Ming-Chi Kuo said on Thursday (October 31) that Apple may reduce its reliance on chipmaker Broadcom's Wi-Fi chips next year and launch its own processor. Kuo wrote on social media platform X, "Apple will plan to use its own Wi-Fi chips in new products (e.g., iPhone 17) in the second half of 2025, which will be manufactured with TSMCs N7 process and support the latest Wi-Fi 7 standard." He added, "Apple is expected to adopt its in-house Wi-Fi chips for almost all its products within three years. This move will reduce costs and enhance Apple's ecosystem integration advantages."

For years, Apple has been working on developing its own Wi-Fi chip, but it has encountered technical hurdles in the process. Last year, Kuo said that Apple had put the project on hold for some time and decided to prioritize its own 3-nanometer Apple chips. The latest post suggests that Apple seems ready to put the Wi-Fi chip project back on track.

The news could be significant for Broadcom, as a large portion of its revenue comes from Apple. After the news broke, Broadcom's shares fell as much as 4.8% in early trading on Thursday (October 31), before closing down 3.89%.

After the US stock market closed, Apple announced its fourth-quarter earnings. The earnings report showed that Apple's revenue in the quarter reached $94.93 billion, up 6% year-on-year; adjusted earnings per share were $1.64, which exceeded market expectations of $945.8 billion and $1.60, respectively.

It is understood that Apple's plan to develop its own Wi-Fi chip has been in the works for many years. Earlier, Apple had already started using self-developed chips in some of its products, such as the U1 chip used for wireless connectivity. Apple's plan to develop its own Wi-Fi chip means it will further strengthen its control over the chip supply chain and reduce its dependence on external suppliers.

Industry insiders say Apple's plan to develop its own Wi-Fi chip will have a significant impact on the chip market. On the one hand, this will intensify competition between Apple and chip suppliers such as Broadcom. On the other hand, this will drive technological advancements in the chip industry, bringing consumers a more advanced wireless connectivity experience.

It is noteworthy that Apple's plan to develop its own Wi-Fi chip is still in its early stages. It is unclear how Apple will overcome technical obstacles and when it will be able to achieve mass production. But what is certain is that this move by Apple will have a profound impact on the entire technology industry.

In addition, Apple's plan to develop its own Wi-Fi chip has also raised concerns about security and privacy. Some experts believe that self-developed chips by Apple could increase the risk of hacking. Moreover, Apple's data collection practices on users could also spark controversy.

In conclusion, Apple's plan to develop its own Wi-Fi chip is a major strategic move that will have a profound impact on Apple's own business development and the entire technology industry. In the future, how Apple overcomes technical challenges and how it addresses security and privacy issues will be the focus of attention.