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Apple plans to replace third-party processors from Broadcom and Qualcomm with proprietary designs, Bloomberg reports based on insider sources.

According to Bloomberg, the tech giant plans to start phasing out Broadcom’s wifi and bluetooth processors from 2025. Apple reportedly won’t touch Broadcom’s RF chips, which are said to be too complex to manufacture in-house.

Apple is also expected to replace Qualcomm’s processors. These include cellular modem chips (x65 for 5G) in iPhones and iPads with cellular connectivity. Apple reportedly wants to start the transition from 2024 or early 2025. Qualcomm is said to have accepted the decision.

Blow to Broadcom

The transition is a blow to Broadcom. Apple is its largest customer in the United States and represents about 20 percent of total revenue. According to Bloomberg, Broadcom would lose annual sales of between €1 billion and €1.4 billion as a result.

This is not the first time Apple has replaced third-party chips with proprietary designs. The tech giant previously swapped out Intel processors in MacBooks with Arm-based M1 and M2 processors.

Tip: Apple M1 chips continuously catch on: break with Intel bears fruit