Apple's New Wi-Fi 7 Chip: A Game-Changer in iPhone 17 Series and Supply Chain Strategy

Apple is poised to introduce its self-developed Wi-Fi 7 chip with next year's iPhone 17 series, marking a strategic shift to reduce reliance on Broadcom for wireless technology components, according to renowned analyst Ming-Chi Kuo. Currently, Broadcom supplies Apple with over 300 million Wi-Fi and Bluetooth chips annually. By moving to an in-house solution, Apple aims to cut costs and bolster its control over the supply chain.

The new Wi-Fi 7 chip is set to be manufactured using TSMC's 7nm process technology. It boasts significantly higher performance than its predecessor, Wi-Fi 6, with maximum data transfer speeds potentially reaching 46Gbps—nearly five times the speed of Wi-Fi 6. One of Wi-Fi 7's standout features is its broader frequency band support, encompassing 2.4GHz, 5GHz, and 6GHz bands, offering enhanced flexibility and efficiency in connectivity.

However, the rollout of Wi-Fi 7 chips might encounter regional variations in frequency band availability. For instance, countries like the United States, South Korea, and Brazil have allocated the entire 6GHz band (5.925-7.125GHz) to Wi-Fi 6E and Wi-Fi 7 technologies. This could affect device compatibility and performance across different markets.

Apple's shift to self-reliance in wireless chips mirrors its previous moves in other areas of semiconductor design. The company's acquisition of Intel's modem business in 2019 was a significant step toward developing its 5G modem, scheduled to debut in iPhone SE 4 and the iPhone 17 Air next year. This move is part of Apple's broader strategy to transition away from using Qualcomm components, which has been underway since the acquisition.