In a major milestone, Taiwan-based semiconductor company MediaTek has secured its first spot in Apple’s supply chain, providing data modem chips for upcoming Apple Watch models. This collaboration marks a significant shift in Apple’s sourcing strategy, previously dominated by Intel for its smartwatch modems.

MediaTek will supply 5G modems tailored for Apple Watch, enhancing connectivity while focusing on power efficiency. Unlike traditional 5G chips, MediaTek's solutions are optimized for wearables, offering reliable speeds and improved energy performance. These advancements could address long-standing battery concerns in current Apple Watch models, including the premium Apple Watch Ultra, which currently uses Intel's 4G modems.

This partnership signifies MediaTek’s growing influence in the semiconductor market and highlights Apple’s efforts to diversify its supplier base while enhancing device capabilities. MediaTek’s inclusion builds on its previous relationship with Apple, having supplied components for Beats, Apple’s audio brand.

The collaboration is part of a broader push by Apple to integrate advanced features into its smartwatch lineup. The upcoming Apple Watch Ultra, set for a 2024 release, will reportedly introduce satellite communication capabilities, enabling emergency messaging through Globalstar’s network in areas without cellular or Wi-Fi connectivity.

For MediaTek, this partnership represents a breakthrough, positioning it alongside Qualcomm and other industry leaders as a supplier to one of the most sought-after consumer brands. Industry reports suggest Apple has been evaluating MediaTek’s offerings for over five years, a testament to the company’s technological strength and reliability.

By transitioning from Intel to MediaTek, Apple aims to increase supply chain diversity, reduce costs, and leverage advanced manufacturing processes such as TSMC’s latest nodes. This move also sets the stage for Apple’s continued evolution in its wearable devices, as the company is reportedly developing its own in-house 5G modem for future products.

As MediaTek makes its debut in Apple’s core hardware supply chain, the collaboration is poised to reshape competition in the semiconductor and wearable technology markets, with potential ripple effects across the global tech ecosystem.