Apple Develops Custom AI Server Chip in Partnership with Broadcom

Apple Develops Custom AI Server Chip in Partnership with Broadcom

Apple is said to be developing its own AI server chips known by the codename 'Baltra.' A report from The Information, shared by Reuters, indicates that the chip is being created in collaboration with Broadcom. Production is anticipated to begin in 2026.

Manufacturing Process

To manufacture these chips, Apple is relying on Taiwan Semiconductor Manufacturing Company (TSMC) and their N3P process, a 3nm technology that provides better transistor density while lowering power use.

Previous Collaborations

Last year, Apple entered into a multibillion-dollar agreement with Broadcom concerning 5G radios and components for wireless connectivity. Earlier this year, a report from The Wall Street Journal, as reported by Bloomberg, mentioned that Apple was working on chips meant for data centers that support AI applications.

Accelerated Development

According to Bloomberg, Apple's plan to create in-house chips was initially proposed three years ago. However, the recent surge in AI demand has pushed the company to hasten their plans. Basic tasks, such as summarizing notifications or responding to queries, can be managed by on-device chips. However, more complex activities like summarizing articles or writing emails necessitate greater processing power. Therefore, Apple's strategy is to transfer these demanding tasks to their servers.

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