Apple reportedly plans to form a R&D team to develop baseband processors for use in iPhones to be released in 2015 and will place the baseband chip orders with Samsung Electronics and Globalfoundries, according to industry sources.
Although some sources also indicated that Apple may develop SoC chips that will integrate application processors and baseband chips, it is more likely that Apple will continue to use discrete baseband chips, said the sources.
Apple currently purchases baseband chips from Qualcomm, which then produces the chips at Taiwan Semiconductor Manufacturing Company (TSMC), indicated the sources, adding that Qualcomm and TSMC will be affected if Apple decides to develop baseband chips in house.
The global production value of baseband chips for handset applications totals about US$16-19 billion a year, with Qualcomm accounting for over 50% share in the segment, indicated the sources. |