Goodbye Broadcom & Qualcomm, Apple Wants to Use Its Own Chip


 Apple is trying to develop its own chips

Broadcom and Qualcomm chips will be replaced

Broadcom shares down 4.7%

As Apple Inc seeks to replace the chips in its devices with home-made components, there is a possibility that Broadcom Inc's chips will also be 'discarded'.

Bloomberg News reported the matter, citing people familiar with the matter.

According to the report, Apple is considering replacing Broadcom's Wi-Fi and Bluetooth chips.

Since switching to using its own chips for the latest models of its Mac computers from Intel Corp, it has continued to work to reduce its dependence on other chipmakers.

The iPhone maker is Broadcom's biggest customer and accounted for about 20% of the chipmaker's revenue last fiscal year, totaling nearly $7 billion.

The move could impact Broadcom's earnings by around $1 billion to $1.5 billion, according to analysts.

It is widely known that Apple will also replace Qualcomm Inc's cellular modem chips with its own chips by late 2024 or early 2025, with the move expected to be phased in.

Following the report, Broadcom shares plunged as much as 4.7% before paring losses to close nearly 2% at $576.89 in the New York session.

Meanwhile, Qualcomm shares closed down around 0.4% at $114.60 and rose slightly at $130.15.