Apple is apparently seeking to deepen its relation with its chip supplier TSMC. The company might be planning to have its custom iPhone 5G modem built by the world’s largest contract chipmaker in 2023.

According to a NikkeiAsia report, sources close to the matter have revealed that the Cupertino based giant plans on building its first in house modem through TSMC’s 4nm process. Furthermore, the brand is developing its own radio frequency and millimeter wave components as well to go alongside the modem. Similarly, the sources added that Apple is even working on its own power management chip, which will be for the modem.

For those unaware, all of the 5G enabled iPhones that are currently available in the market feature modems supplied by Qualcomm. In other words, this move from Apple would end the monopoly that the American chipmaker held in supplying 5G modems. As per our previous report, Qualcomm is expected to ship just 20 percent of iPhone modems in 2023, since Apple would launch its in house 5G modem the same year.

This would allow the iPhone maker to not just save costs on fees that it pays Qualcomm, but also enable it to have even more control over its hardware integration capability to boost efficiency. Additionally, the self designed modem from Apple could also help in integrating it to its custom iPhone SoCs that are also supplied by TSMC. Back in 2019, the brand had also acquired Intel’s modem business to boost the development of its proprietary modems.

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Apple is said to be in the advanced stages of making a deal with Intel for its modem business,  the Wall Street Journal reported on Thursday. This report comes a couple of months after Qualcomm and Apple announced a truce to ensure steady supply of its modems for the upcoming iPhones.

The deal is said to cover Intel’s portfolio of patents and staff in its modem business valued at $1 billion. An official announcement is expected sometime in the next week when the deal could be finalized. Buying off Intel’s modem business would be crucial for the iPhone maker as it would speed up plans for its inhouse modem development. The company has been looking to setup a similar department to its inhouse chip development team for its modem business. This would ensure it’s capable of developing and using inhouse modem chips for future iPhone models. The company has already hired engineers and executives, some of whom are from Intel for this purpose.

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Getting access to Intel’s talent and patents in the modem business would give a solid boost to its inhouse modem development plans. This is particularly important in the next couple of years where 5G will become an important cellular network technology for smartphones.

As for Intel, this would be a very good opportunity to shed off a loss-making business unit. After Apple and Qualcomm made a deal back in April, Intel was quick to announce its departure from the modem business for smartphones. This wasn’t surprising given Apple was the semiconductor giant’s biggest customer and it didn’t make sense to continue running the business without the iPhone maker. To recall, Intel was the sole third-party modem provider for last year’s iPhone models.

If this deal goes through, expect an official announcement from both the companies in the coming weeks.

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