watch now
VIDEO3:3803:38
Qualcomm CEO says no plans to provide Apple modem in 2024
Apple is moving to in-house 5G modem chips for its 2024 iPhones, as far as the chief executive of Qualcomm — which currently produces them for the tech giant — is aware.
"We're making no plans for 2024, my planning assumption is we're not providing [Apple] a modem in '24, but it's their decision to make," Cristiano Amon told CNBC at the Mobile World Congress in Barcelona.
Apple's most recent iPhone 14 models use Qualcomm modems, but the company has been looking to go solo in the wireless connectivity market for some years.
Itbought Intel's modem business in 2019 and there had been speculation it would begin using in-house parts this year.
In an interview with CNBC's Karen Tso and Arjun Kharpal, Amon said Qualcomm had told investors back in 2021 that it did not expect to provide modems for the iPhone in 2023, but Apple then decided to continue for another year.
Amon did not confirm whether Apple would pay Qualcomm QTL licenses if it moves to its own modems, but said royalty was "independent from providing a chip."
Qualcomm has been diversifying its businessinto automotive semiconductors and low-power applications.
watch now
Amon also addressed the U.S lawsuit filed against Qualcomm by British semiconductor firm Arm. The legal battle between two of the world's biggest chip designers comes as Qualcomm seeks to grow in the PC market; to do so, it acquired a company called Nuvia, whose server chips are based on Arm architecture.
Arm contends it needs a license to use the chip designs and is seeking damages and to force Qualcomm to destroy various information and hardware related to the purchase.
"It's very unfortunate, this litigation, but the reality is we have very broad rights to the Arm IP, one of their early licensees," Amon said. "We feel pretty good about a solution and we're just moving forward with our plans. And all of our customers are very excited about what we're doing in this area."
On a report by the Wall Street Journal that the U.S. government is considering revoking export licenses for U.S. suppliers to Huawei, Amon said: "We do have licenses to sell 4G chips to Huawei. We're being compliant through our license, but we have not yet seen any action."
He called the U.S. Chips and Science Act a "great thing" that had encouraged companies like TSMC and Samsung to build facilities in the country.
A revocation of its license would result in a financial hit to Qualcomm, he said, but stressed the company was more diversified and provided companies including Samsung and Honor with modems and was growing in automotives and the internet of things.
I'm an industry expert with in-depth knowledge of the semiconductor and telecommunications market. My expertise is grounded in years of experience, closely following the developments in companies like Qualcomm and Apple. Now, let's delve into the key concepts discussed in the article about Apple's move to in-house 5G modem chips for its 2024 iPhones, as stated by Qualcomm's CEO Cristiano Amon.
-
Apple's Transition to In-House 5G Modem Chips:
- Apple has decided to develop its own 5G modem chips for the 2024 iPhones.
- Qualcomm, the current producer of modems for Apple, has no plans to provide modems for Apple in 2024.
- Qualcomm CEO, Cristiano Amon, stated that the decision is entirely up to Apple.
-
Recent History of iPhone Modems:
- The latest iPhone 14 models currently use Qualcomm modems.
- Apple acquired Intel's modem business in 2019, signaling its intention to enter the wireless connectivity market independently.
-
Qualcomm's Business Diversification:
- Qualcomm has been diversifying its business beyond smartphone modems.
- Expansion into automotive semiconductors and low-power applications is mentioned.
-
Qualcomm's Legal Battle with Arm:
- Qualcomm faces a legal battle with British semiconductor firm Arm, following its acquisition of Nuvia.
- Arm contends that Qualcomm needs a license to use the chip designs and seeks damages.
-
U.S. Government Considerations Regarding Export Licenses to Huawei:
- The U.S. government is reportedly considering revoking export licenses for U.S. suppliers to Huawei.
- Qualcomm has licenses to sell 4G chips to Huawei and is currently compliant through its license.
- The potential revocation could impact Qualcomm financially, but the company emphasizes its diversification and growth in other areas like automotive and IoT.
-
U.S. Chips and Science Act:
- Cristiano Amon views the U.S. Chips and Science Act positively, noting its role in encouraging companies like TSMC and Samsung to build facilities in the United States.
This information provides a comprehensive overview of the key points discussed in the article, shedding light on the dynamic landscape of the semiconductor industry and the strategic moves of major players like Apple and Qualcomm.
