JAKARTA - Apple reportedly asked Taiwan Semiconductor Manufacturing Co. (TSMC) manufactures 5G modems for future iPhones, in order to reduce dependence on Qualcomm for 5G cellular chips.

According to a report obtained by Nikkei Asia, Apple's first generation of in-house 5G modems will likely be based on TSMC's new 4nm manufacturing process. When developed, the chip will incorporate Apple-designed components for radio frequencies and millimeter waves.

The Cupertino, US-based giant has also started working on a power management chip specifically designed to work with this modem. It's unclear when the new hardware will be ready for distribution, possibly in 2023.

Citing TechSpot, Thursday, November 25, Apple has so far relied on modem hardware from Qualcomm for 5G connectivity on its iPhones. The company is seeking to reduce its reliance on Qualcomm for the time being, going one step further by buying Intel's 5G modem business in mid-2019.

Not relying on suppliers like Qualcomm for these components will save Apple expenses, but also allow the company to increase efficiency through better hardware integration.

In addition to lower development costs, the advantages of moving to an internal chip are numerous. Giving Apple more control over hardware integration, it will significantly lower production costs.

While it's unlikely that Apple will pass these savings on to consumers through the sale of its phones, tighter hardware integration, in Apple's case, usually results in large performance improvements. It remains to be seen if this will happen to Apple's internal modems as well.


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