[News] Apple Reportedly Set to Launch Self-Made Modem Chip, Challenging Qualcomm

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For years, there have been rumors that Apple plans to develop its own modem chips to reduce reliance on Qualcomm and save significant costs. According to a report from Bloomberg, Apple’s first in-house modem chip is set to debut soon, with an expected launch next year.

Apple has reportedly contracted TSMC to handle the production of the modem chip. The chip is expected to hit the market next year and will reportedly be featured in the new iPhone SE, set to launch in the spring. This first modem, code-named Sinope, will initially be applied to products like the iPhone SE and lower-end iPads, as its performance reportedly still lags slightly behind Qualcomm’s offerings, as the report notes.

Apple’s Plan of Second and Third Generation Modems

By 2026, Apple aims to narrow the performance gap with Qualcomm through its second-generation modem, code-named Ganymede. According to Bloomberg, this chip is expected to debut in the iPhone 18 lineup and higher-end iPads by 2027.

In 2027, Apple plans to release its third-generation modem, code-named Prometheus. This modem is designed to outperform Qualcomm with enhanced performance, AI capabilities, and support for next-generation satellite networks. In the longer term, Apple is exploring the integration of its modem and main processor into a single component, as highlighted by the report.

Qualcomm’s Strategic Response

The move toward developing its own modems can be traced back to Apple’s 2019 acquisition of Intel’s smartphone modem chip business for USD 1 billion, as highlighted by Bloomberg. Since then, this acquisition has spurred speculation that Apple was aiming for full self-sufficiency in its smartphone chip production.

With Apple reportedly launching its modem chip soon, Qualcomm is bracing for the impact this shift will have on its exclusive supply position. In its financial report released on November 19, Qualcomm emphasized its efforts to diversify its product portfolio and ensure a more balanced revenue stream. The company projects that by 2029, revenue from non-mobile sectors—such as PCs, automotive, industrial applications, and extended reality (XR)—will reach USD 22 billion.

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(Photo credit: Apple)