Analyst Ming-Chi Kuo has recently provided insights regarding the upcoming iPhone 17 generation, indicating that it will utilize a Wi-Fi 7 chip developed in-house by Apple. This move marks a significant shift away from Apple’s reliance on third-party suppliers.
Kuo noted that the iPhone 17 and other Apple devices expected to launch in late 2025 will feature this proprietary Wi-Fi 7 chip, which aims to reduce dependency on Broadcom, the current supplier of Wi-Fi chips, which provides over 300 million chips annually to Apple. According to JP Morgan’s analysis in 2018, this partnership has generated approximately $10 in revenue for Broadcom for each iPhone sold.
By designing its chips, Apple seeks to diminish its reliance on Broadcom, effectively posing a challenge to one of its main suppliers. Kuo highlighted that products released after the second quarter of 2025, including the iPhone 17, will leverage this new Apple-designed Wi-Fi chip manufactured using TSMC’s 7nm process, which will fully support the latest Wi-Fi 7 technology. This strategy is part of a broader initiative to transition nearly all Apple products to internal Wi-Fi chips within three years, a change expected to lower costs and improve ecosystem integration.
Additionally, Apple has set a goal to complete its first mobile modem chip by late 2024 or early 2025, to reduce dependence on Qualcomm. However, issues in the development process have led to potential delays.
Kuo also mentioned that devices equipped with Apple’s self-developed modem chips would help further cut costs and enhance the overall ecosystem. Currently, Apple sources Wi-Fi chips from Broadcom, with both companies previously involved in a legal dispute with Caltech. A court had ordered Apple to pay $838 million, while Broadcom was ordered to pay $270 million for Wi-Fi patent infringements; however, this lawsuit was eventually dropped after a mutual agreement was reached.
