Apple is developing server chips for artificial intelligence (AI) computing in collaboration with American semiconductor corporations Broadcom, according to a report on the 11th (local time) by IT specialist media outlet The Information.
Sources noted that Apple's AI chip development is ongoing internally under the code name 'Baltra' and is expected to be ready for mass production in 2026. They also reported that the production of these chips will utilize one of Taiwan Semiconductor Manufacturing Company's (TSMC) latest processes, the 3-nanometer class (N3P).
Broadcom is a global semiconductor and infrastructure software solutions corporations that designs and develops high-performance semiconductors and software products used in various industries. It ranks 10th by market capitalization on the New York Stock Exchange.
In May of last year, Apple also signed a multi-year contract worth billions of dollars with Broadcom for the development of 5G (fifth-generation mobile communications) radio frequency (RF) components and advanced wireless connectivity components.
Apple's development of its own AI chips is analyzed as a means to reduce dependence on NVIDIA, which dominates over 80% of the global AI chip market. Previously, Apple announced at the annual Worldwide Developers Conference (WWDC) in June that it plans to use its own server chips to power AI capabilities.
Apple is currently using its own developed chips (SoC) called 'Apple Silicon' in all its devices, including the iPhone. While it has used Intel chips in desktop and laptop PCs such as the iMac and MacBook for a long time, it has also replaced them with its own developed M-series chips.
Following the news of the collaboration between Apple and Broadcom, Apple shares fell by 0.52% on the New York Stock Exchange, while Broadcom shares surged by 6.63% compared to the previous day.