Apple Developing AI Server Chips with Broadcom to Reduce Dependence on Nvidia
by Kim Jinyeong
Published 12 Dec.2024 08:22(KST)
TSMC 3-Nanometer Class (N3P) Process Usage
Mass Production Expected in 2026
iPhone manufacturer Apple is reportedly developing AI computation server chips in collaboration with U.S. semiconductor company Broadcom, according to IT media outlet The Information on the 11th (local time).
According to sources, Apple is currently developing the product chip under the codename 'Baltra,' and plans to use Taiwan's TSMC, the world's largest foundry, for production using its 3-nanometer (N3P) process. Mass production is expected to begin in 2026.
Bloomberg reported, "Apple is falling behind in the AI race," adding, "Apple, which has been moving to avoid purchasing NVIDIA chips, has set a new milestone." Earlier, at the annual Worldwide Developers Conference (WWDC) in June, Apple announced plans to run AI functions using its own server chips.
Apple has long worked to reduce its dependence on NVIDIA, which holds over 80% of the global AI chip market. Apple uses its independently developed chips (SoC) called 'Apple Silicon' in all its devices, including the iPhone. The Intel chips previously used in iMacs and MacBooks have also been replaced with Apple’s self-developed M-series chips.
Broadcom, which Apple has partnered with, is a global semiconductor and infrastructure software solutions company ranked within the top 10 by market capitalization on the New York Stock Exchange. It designs and develops high-performance semiconductors and software products used across various industries. In May last year, Apple signed a multi-year contract worth billions of dollars with Broadcom to develop 5G (fifth-generation mobile communication) radio frequency (RF) components and advanced wireless connectivity components.
Major foreign media explained, "Apple is not the only big tech company struggling to reduce dependence on NVIDIA," adding, "Broadcom has also partnered with Google, which is diversifying its chip supply chain, becoming one of the biggest beneficiaries of the generative AI boom." Broadcom closed trading on the New York Stock Exchange at $183.20, up about 6% from the previous day. It has risen more than 68% so far this year.
Apple also announced the rollout of software integrating ChatGPT into its voice assistant 'Siri.' Powered by OpenAI’s latest AI model GPT-4o, Siri will provide answers through ChatGPT with the user’s permission if it determines that ChatGPT’s response is more suitable for a specific question. The update also includes features allowing users to create new emojis and automatically generate images matching the input text.
CNBC analyzed, "As Apple Intelligence features are added one by one, many investors expect an increase in iPhone sales and accelerated upgrade cycles, forecasting that Apple will establish itself as a leader in consumer-focused AI." Apple’s stock, which has risen more than 30% this year, closed slightly down at $246.49 on the day. During the session, it touched $250 for the first time ever.
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