According to Qualcomm’s chief executive, Cristiano Amon, Apple is planning to use in-house 5G modem chips for its iPhones in 2024. Currently, Qualcomm produces modems for Apple’s iPhone 14 models. However, Apple has been looking to go solo in the wireless connectivity market and bought Intel’s modem business in 2019. There had been speculation that Apple would start using in-house parts this year.
Amon told CNBC at the Mobile World Congress in Barcelona that Qualcomm is not making plans to provide Apple with a modem in 2024. He added that the decision is up to Apple to make. Qualcomm had previously informed investors in 2021 that it did not expect to provide modems for the iPhone in 2023, but Apple decided to continue for another year.
Although Amon did not confirm whether Apple would pay Qualcomm QTL licenses if it moves to its own modems, he clarified that royalty was independent of providing a chip.
Qualcomm has been expanding its business into automotive semiconductors and low-power applications. Amon also addressed the legal battle between Qualcomm and British semiconductor firm Arm. Arm contends it needs a license to use the chip designs and is seeking some damages and to force Qualcomm to destroy various information and hardware related to the purchase. Amon stated that they have very broad rights to the Arm IP and that he feels good about a solution.
On the report by the Wall Street Journal that the US government is considering revoking export licenses for US suppliers to Huawei, Amon said that they have licenses to sell 4G chips to Huawei. Qualcomm is being compliant through its license but has not yet seen any action.
A revocation of its license would result in a financial hit to Qualcomm, but Amon stressed that the company was more diversified and provided companies including Samsung and Honor with modems. Qualcomm was growing in automotives and the internet of things. He called the US Chips and Science Act a great thing that had encouraged companies like TSMC and Samsung to build facilities in the country.
In conclusion, Apple is planning to use in-house 5G modem chips for its iPhones in 2024. Qualcomm’s chief executive, Cristiano Amon, stated that Qualcomm is not making plans to provide Apple with a modem in 2024, but the decision is up to Apple to make.
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