Qualcomm Who? Apple Is Planning Production for Its First 5G Modem Chips to Be Used in the ‘iPhone 15’

It looks like Apple is preparing to kick Qualcomm to the curb by next year, as it begins preliminary talks with the suppliers that will help to produce the first Apple-designed 5G modem chip for next year’s “iPhone 15” models.

Over the past few years, Apple has been working frantically behind the scenes to create a cellular modem chip that would replace the Intel and Qualcomm versions found in its iPhones since nearly the very beginning.

While the company was almost certainly spurred on by its big dust-up with Qualcomm, its plans actually go back much farther. This isn’t surprising, as Apple has always preferred to own all the important pieces of its technology to help it avoid the very kind of problems that led to its heated battle with Qualcomm. After all, Apple doesn’t have to pay royalties for its own chip designs.

Of course, even though Apple has proven itself to be more than capable of designing impressive SoC chips, from the A-series silicon found in the iPhone and iPad to the insanely powerful M-series chips used in the latest Macs, designing a modem chip requires a different set of skills, as there are several extra layers of complexity involved. This includes handling radio signals as well as ensuring smooth operation across global 4G and 5G networks.

Despite Apple’s deep pockets, this wasn’t something most folks expected the company to crack overnight. In fact, when Apple began its journey down this road, most expected it wouldn’t have a 5G chip ready until 2025. However, thanks to its acquisition of Intel’s 5G business, it’s managed to get a bit more of a head-start, and analysts have been predicting that 2023 will be the year of the Apple 5G modem.

According to a new report from DigiTimes, there’s every reason to believe that things are still on track, as Apple has now begun talks with two key suppliers, Advanced Semiconductor Engineering (ASE) and Siliconware Precision Industries (SPIL) about having them package its first 5G modem chips.

Apple is estimated to ship at least 200 million new iPhones in 2023, and will surely rely on multiple partners to handle backend processing of its in-house 5G modem chips and RF transceiver ICs, based on its regular supply chain management policy for its devices, the sources added.DigiTimes

While TSMC is still expected to handle the actual fabrication of Apple’s new 5G modem chips, these other two suppliers would be called upon to handle the “packaging” portion — integrating the modem chips with other key 5G components such as the new 5G RF chips we heard about this week.

Notably, ASE and SPIL already handle the packaging of Qualcomm’s Snapdragon X60 modem chips and Samsung 5G RF chips used in the iPhone 12 and iPhone 13.

While it’s too early to say for certain what benefits Apple’s own 5G modem chips will bring to the table over Qualcomm’s Snapdragon X65 — the chip expected to be used in this year’s “iPhone 14” — it’s a safe bet that the tighter integration will result in better performance, improved battery life, and lower costs.

After all, Apple pays Qualcomm a boatload of money for its 5G chips, and it’s likely that the development and manufacturing costs of its own in-house chips are considerably lower.

Don’t expect these savings to be reflected in lower iPhone prices, however, as Apple will pass the savings on to consumers in a far less direct way. Lower component costs, reduced chip sizes, and increased integration and power efficiency will allow Apple to bring even more advanced features to future iPhone models, but at the same pricing levels we’ve come to expect.

[The information provided in this article has NOT been confirmed by Apple and may be speculation. Provided details may not be factual. Take all rumors, tech or otherwise, with a grain of salt.]