Apple is reportedly advancing the development of specialized chips tailored for future technologies, including its first smart glasses, artificial intelligence (AI) servers, and next-generation MacBooks, according to a Bloomberg News report. The move signals Apple’s intensifying efforts to strengthen its hardware ecosystem amid growing competition in both the wearables and AI markets.
The new chip, which is being manufactured by Taiwan Semiconductor Manufacturing Company (TSMC), is designed with energy efficiency in mind. Drawing from the low-power architecture of Apple Watch processors, the chip is optimized to handle multiple cameras and sensors expected to be integrated into the upcoming smart glasses. If development continues as planned, mass production could begin by late 2026 or 2027, with a commercial launch of the smart glasses potentially occurring within the next two years.
Apple’s venture into smart glasses pits it directly against Meta Platforms, whose Ray-Ban smart glasses have gained popularity for integrating social and AR features. Apple’s device is expected to go beyond fashion-focused functionality, incorporating intelligent features that support a deeper integration with the Apple ecosystem and perhaps AI-driven capabilities.
The development of these custom chips also reflects Apple’s broader ambition in the AI space. With its recent introduction of Apple Intelligence — a suite of on-device AI tools that help summarize notifications, rewrite emails, and interact with OpenAI’s ChatGPT — the company is carving out a unique AI strategy that emphasizes user privacy and seamless integration across Apple devices.
In February, Apple showcased its commitment to in-house hardware by unveiling its first proprietary modem chip, further reducing reliance on third-party suppliers like Qualcomm. These advancements in custom silicon, including the new chip for AI servers, are part of Apple’s long-term strategy to control more aspects of its hardware and software ecosystem.
If successful, Apple’s smart glasses could become a cornerstone product, blending wearable technology with AI, augmented reality, and seamless connectivity — all powered by Apple-designed chips. The next two years could mark a significant turning point in Apple’s hardware innovation trajectory.