Apple Inc has moved its modem chip engineering effort into its in-house hardware technology group from its supply chain unit, two people familiar with the move said, a sign the tech company is looking to develop a key component of its iPhones after years of buying it from outside suppliers.
Modems are an indispensable part of phones and other mobile devices, connecting them to wireless data networks. Apple once used Qualcomm Inc chips exclusively, but began phasing in Intel Corp chips in 2016 and dropped Qualcomm from iPhones released last year.
Apple senior vice president of hardware technologies Johny Srouji took over the company’s modem design efforts last month, the sources said.
The organizational move has not been previously reported.
Srouji joined Apple in 2008 to lead chip design, including the custom A-series processors that power iPhones and iPads, and a special Bluetooth chip that helps those devices pair with its AirPods wireless headphones and other Apple accessories.
The modem efforts had previously been led by Ruben Caballero, who reports to Dan Riccio, the executive responsible for iPad, iPhone and Mac engineering, much of which involves integrating parts from the company’s vast electronics supply chain.
Apple declined to comment.
Technology publication The Information previously reported that Apple was working to develop its own modem chip.
The Cupertino, California-based company has posted job listings for modem engineers in San Diego, a hub for wireless design talent because of Qualcomm’s longtime presence there and a place where Apple has said it plans to build up its workforce.
Apple’s effort to make its own modem chips could take years and it is impossible to know when, or in what devices, such chips might appear.
“When you’re Apple, everything has to be good,” said Linley Gwennap, president of chip industry research firm The Linley Group.
“There’s no room for some substandard component in that phone,” Gwennap said.
Apple’s investment in modem chips comes as carriers and other phone makers are rolling out devices for the next generation of faster wireless networks known as 5G.
Rival handset makers Samsung Electronics Co and Huawei Technologies Co (華為) already make their own modems.
Making its own modem chips would likely cost Apple hundreds of millions of US dollars or more per year in development costs, analysts said, but could save it money eventually.
Modem chips are a major part of the cost of Apple devices, worth US$15 to US$20 each and likely costing Apple US$3 billion to US$4 billion for the 200 million or so iPhones it makes a year, Bernstein analyst Stacy Rasgon said.
Apple might also benefit by combining its modem chips with its processor chips, as Samsung, Huawei and most other phone makers do. That saves space and battery life, two important considerations if Apple introduces augmented-reality features into future products.
PROTECTIONISM: China hopes to help domestic chipmakers gain more market share while preparing local tech companies for the possibility of more US sanctions Beijing is stepping up pressure on Chinese companies to buy locally produced artificial intelligence (AI) chips instead of Nvidia Corp products, part of the nation’s effort to expand its semiconductor industry and counter US sanctions. Chinese regulators have been discouraging companies from purchasing Nvidia’s H20 chips, which are used to develop and run AI models, sources familiar with the matter said. The policy has taken the form of guidance rather than an outright ban, as Beijing wants to avoid handicapping its own AI start-ups and escalating tensions with the US, said the sources, who asked not to be identified because the
Taipei is today suspending its US$2.5 trillion stock market as Super Typhoon Krathon approaches Taiwan with strong winds and heavy rain. The nation is not conducting securities, currency or fixed-income trading, statements from its stock and currency exchanges said. Yesterday, schools and offices were closed in several cities and counties in southern and eastern Taiwan, including in the key industrial port city of Kaohsiung. Taiwan, which started canceling flights, ship sailings and some train services earlier this week, has wind and rain advisories in place for much of the island. It regularly experiences typhoons, and in July shut offices and schools as
Her white-gloved, waistcoated uniform impeccable, 22-year-old Hazuki Okuno boards a bullet train replica to rehearse the strict protocols behind the smooth operation of a Japanese institution turning 60 Tuesday. High-speed Shinkansen trains began running between Tokyo and Osaka on Oct. 1, 1964, heralding a new era for rail travel as Japan grew into an economic superpower after World War II. The service remains integral to the nation’s economy and way of life — so keeping it dazzlingly clean, punctual and accident-free is a serious job. At a 10-story, state-of-the-art staff training center, Okuno shouted from the window and signaled to imaginary colleagues, keeping
FALLING BEHIND: Samsung shares have declined more than 20 percent this year, as the world’s largest chipmaker struggles in key markets and plays catch-up to rival SK Hynix Samsung Electronics Co is laying off workers in Southeast Asia, Australia and New Zealand as part of a plan to reduce its global headcount by thousands of jobs, sources familiar with the situation said. The layoffs could affect about 10 percent of its workforces in those markets, although the numbers for each subsidiary might vary, said one of the sources, who asked not to be named because the matter is private. Job cuts are planned for other overseas subsidiaries and could reach 10 percent in certain markets, the source said. The South Korean company has about 147,000 in staff overseas, more than half
RSS