Apple's Self-Developed 5G Chip, Ibiza, to Potentially Replace Qualcomm Modems in iPhone 16 Series

According to a report from Taiwan's China Times News, citing supply chain sources, Apple's self-developed 5G baseband chip, codenamed Ibiza, will use TSMC's 3nm process, and the RFIC will use TSMC's 7nm process. It is expected to be used in the iPhone 16 series that Apple plans to launch in 2024.

Currently, Apple's iPhone uses 5G modems purchased from Qualcomm. However, at the 2023 World Mobile Communications Conference (MWC 2023), Qualcomm CEO Cristiano Amon stated that Apple and Qualcomm have not yet discussed the 5G modem chip orders for 2024. He speculated that this could mean that Apple plans to start using its self-developed 5G baseband chips in the iPhone 16 series to be launched in 2024.

As early as 2021, Qualcomm warned investors and the market that it may face the risk of Apple switching to self-made 5G baseband chips in the future. At that time, Qualcomm warned that by 2023, the ratio of iPhones and iPads using Qualcomm's 5G modems may drop to only 20%. However, due to Apple's slower-than-expected progress in developing its own modems, Qualcomm is still the exclusive supplier of Apple's 5G modem chips.

The industry expects TSMC to fully win the 3nm wafer foundry orders, and it is estimated that TSMC will start trial production for Apple in the second half of this year, gradually increasing the shipment volume in the first half of 2024, and entering a new growth cycle after Q3 next year.