Developing a Wi-Fi/Bluetooth chip is “more challenging than just a Wi-Fi-only chip,” Kuo says
Kuo says that the issue Apple has run into is being able to develop a single component that supports Wi-Fi and Bluetooth connectivity in a single chip. Kuo adds, “From a design standpoint, developing a Wi-Fi+Bluetooth combo chip is more challenging than just a Wi-Fi-only chip. Since most of Apple’s products use the combo chip, it would be even more challenging to replace Broadcom’s combo chips with its own if Apple decides to do so.”
Top analyst Kuo says that Apple will continue to use Broadcom’s combo chips for Wi-Fi and Bluetooth connectivity
Kuo says that Apple is focusing its engineering resources on developing its Apple Silicon for TSMC’s 3nm process node. He says that the “world’s most advanced 3nm processors” from Apple will undergo mass production possibly as soon as this year. Currently, Apple’s M1 and M2 chips are produced using TSMC’s 5nm process node. The A17 Bionic could be the first chip used by the tech giant to be produced using the 3nm process.
The reliable analyst writes, “The slowdown of processor upgrades is unfavorable to the sales of end products (such as A16 and M2 series chips). Therefore, to ensure that the world’s most advanced 3nm processors can enter mass production smoothly in 2023–2025, and the performance upgrade and power consumption improvement can significantly improve vs. predecessors, Apple has devoted most of its IC design resources to the development of processors.” Kuo also says that Apple’s development of the Wi-Fi/Bluetooth chip was even worse than its work on the 5G modem chip.
Kuo says that Broadcom is the big winner of Apple’s decision to stop development on its Wi-Fi chip
Qualcomm, which expected to see its share of new iPhone models using its modem drop from 100% to 20%, is now back at 100% for the time being. Qualcomm stockholders were extremely happy with this news. And today’s tweet from Kuo warmed the cockles of the hearts of Broadcom stockholders whose shares soared $12.90 (or 2.2%) in regular trading today and closed at $598.58. Qualcomm’s stock also rose 2.13% today.
