Apple has extended its modem chip licensing agreement with Qualcomm through March 2027.
Apple analyst Ming-Chi Kuo thinks Apple’s work to create its own 5G modem chip has stalled and that Qualcomm will remain the tech giant’s modem supplier for the near future.
Kuo tweets: My latest survey indicates that Apple’s own iPhone 5G modem chip development may have failed, so Qualcomm will remain exclusive supplier for 5G chips of 2H23 new iPhones, with a 100% supply share (vs. company’s previous estimate of 20%).
The Sellers Research Group (that’s me) is skeptical that Apple won’t make its own 5G modem within the next two years. After all, if the company can make its own smartphone, tablet, and computer chips, it cn certainly overcome 5G modem problems.
In February, it was reported that ASE Technology was in preliminary talks with Apple for backend orders associated with the tech giant’s first self-designed 5G modem chips set for use in 2023. According to DigiTimes, Apple has already lined up its manufacturing partner, TSMC, to product its in-house 5G modem chips.
Apple currently uses Qualcomm modems. However, the tech giant Intel’s smartphone modem business in July 2019 and added 2,200 Intel engineers to its chipset operations globally.
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