Kuo: Apple's Work on 5G Modem Chip 'Failed,' Qualcomm to Remain Supplier for 2023 iPhones

For the last several years, Apple has been working to develop its own 5G modem chip so that it won't need to rely on Qualcomm as a supplier.

According to a survey, the development of the chip has stopped, meaning that it will remain the exclusive supplier of 5G chips for the next generation of the phone. Previously, it was believed that Apple would use in-house modem chips in its next phone.

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[Company Update] Qualcomm (QCOM.O) 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%). — 郭明錤 (Ming-Chi Kuo) (@mingchikuo) June 28, 2022

It is expected that 100 percent of the chips will come from the same company as 20 percent. Apple will continue to develop its own 5G chips, but it will take more time for the work to be completed and satisfactory for use in its products.

It's not clear why Apple won't be able to have its modem chips ready in time for the next iPhones, but the company has been trying to get away from Qualcomm for a long time. It was not possible for Apple to use Intel 5G chips in the 2020 iPhones because Intel was not able to meet Apple's standards.

Apple settled its lawsuit withQualcomm in the middle of the year, and since then, has used the company's 5G modems in its lineup. Since then, Apple has been developing its own modem chip, and it even purchased Intel's modem chip business to get a head start, and rumors said Apple was on track for a 2023 launch. Last year, the company said that it would supply just 20 percent of the modem chips used in the next generation of the phone, but it seems like they may be making chips for two more generations.