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Apple may need to find new WiFi chip supplier as Broadcom reportedly scales back production

wifi

Apple may be left needing to find a new supplier of WiFi chips if a Digitimes report is accurate. The report claims that Broadcom is scaling back its WiFi chip production in favor of more profitable products.

As is often the case with Digitimes reports, the report is unclear, the opening stating that Broadcom is ‘looking to phase out its WiFi chip business’ while a quote ascribed to unnamed sources says instead that it plans to ‘significantly reduce resources allocated to its Wi-Fi chip business.’

Either way, though, Apple may need to find additional or replacement suppliers as it relies on the company’s chips across almost its entire product range. It’s reported that competitors MediaTek, Realtek Semiconductor and RDA Microelectronics have all received last-minute orders from Broadcom customers. It’s not known whether this includes Apple.

Photo: Broadcom WiFi Airport Card for Retina MacBook Pro (Aliexpress)

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Comments

  1. alanaudio - 8 years ago

    Didn’t we read about Apple recruiting it’s own engineers who would be able design these chips in house? It could be that Broadcom is seeing the writing on the wall and reducing it’s reliance on Apple continuing to place large orders in the future.

    • Ksec - 8 years ago

      Most of the other smartphone make are not using Broadcom chip, router market are all moving to Qualcomm Atheos and Mediatek.

      And yes it has been known for a while that Apple are working on their on Network processors, whether that is WiFi, Bluetooth or 4G LTE we don’t know yet. But since WiFi and Bluetooth happens to be the tech being used across ALL Apple product range , iPad, iPhone, Apple TV , ( basically everything apart from Mac which uses Intel ) we are talking 300M + devices per year. And it is likly this represent at least 60%+ of Broadcom revenue.

      And since we are in March, this read to me as a confirmation that iPhone 7 won’t have Broadcom
      Wifi in it, and likely to be an in house solution. Broadcom decide the market isn’t worth it without Apple and simply close down the department.

      I am hoping the iPhone SE will actually have a newer A9 featuring TSMC 16FFC and new Wifi integrated.

  2. just-a-random-dude - 8 years ago

    Apple should consider Intel of this, they produce the best ones

  3. eswinson - 8 years ago

    If Broadcom is downsizing its wifi chip business that may be an indication that Apple has already found another source. If you are providing the networking chipset for hottest smartphone on the market, I don’t think you decide to call it a day and take up fly fishing out of the blue. I suspect losing Apple as a significant customer is prompting the cut backs..

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Avatar for Ben Lovejoy Ben Lovejoy

Ben Lovejoy is a British technology writer and EU Editor for 9to5Mac. He’s known for his op-eds and diary pieces, exploring his experience of Apple products over time, for a more rounded review. He also writes fiction, with two technothriller novels, a couple of SF shorts and a rom-com!


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