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Apple Makes New Team To Design Wireless Chips Inhouse

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Apple is currently looking for engineers to work on developing new wireless chips. The group apparently wants to produce the components in-house in the future. This would mean that Apple would be less dependent on third-party providers such as Broadcom and Skyworks in the long term.

As Bloomberg writes, the job advertisements for the new positions indicate that employees should have experience in the modem chip area. In addition, the engineers are said to have already dealt with other wireless semiconductors. In total, “a few dozen” positions are to be filled. The chips are expected to be manufactured in Irvine, California. In addition to WLAN chips, Apple also wants to produce chips for Bluetooth, RF circuits, and other wireless technologies.

Supplier Contracts expiring 2023

At the moment Apple still has supply contracts with external service providers. Last year, for example, the company committed to purchasing chips from Broadcom by 2023. It is conceivable, however, that the manufacturer will no longer extend the contracts in two years and that it will set up its own chip production facility. So far, however, Apple has not yet commented on the subject and has not issued an official statement.

Broadcom and Skyworks shares Drop

The migration of a major customer is likely to be a problem for current suppliers. After the report was published, the Broadcom share has already plummeted by four percent. The Skyworks share has lost eleven percent in value. Broadcom’s revenue consists of 20 percent payments from the iPhone manufacturer. Skyworks gets 60 percent of its revenue from Apple, making it even more dependent on the company.