Apple Explores AI to Speed Custom Chips

Undercovered Deep Insights

Thu, Jun 19, 2025, 7:49 AM 1 min read

Apple (NASDAQ:AAPL) is exploring generative AI to accelerate its in-house chip design, potentially slashing development timelines and boosting productivity.

In remarks last month in Belgium, Johny Srouji, Apple's senior vice president of hardware technologies, told attendees at an Imec awards ceremony that generative AI has a high potential in getting more design work in less time.

Since debuting its first A4 chip in 2010, Apple has relied on cutting-edge EDA tools from Cadence Design Systems (NASDAQ:CDNS) and Synopsys (NASDAQ:SNPS). Srouji noted those partners are already integrating AI into their software suites to handle growing design complexity.

Apple's chip roadmap has included monumental betsmost notably the 2020 shift from Intel (NASDAQ:INTC) to Apple Silicon across Mac desktops and laptops. Srouji said that all-in strategy, with no backup plan, underpinned the company's ability to optimize performance and power efficiency across devices like the M1 and M2 processors and the Vision Pro headset.

He argued that AI-enhanced tools could represent a similarly transformative leap by automating repetitive tasks and enabling more iterative experimentation.

Investors should watch how quickly EDA providers roll out AI modules and whether Apple pilots internal machine-learning models for layout, verification or synthesis. Faster cycle times could give Apple an edge over rivals, driving cost savings and potentially smoothing supply-chain bottlenecks.

Why It Matters: AI-powered design could shorten chip development from years to months, helping Apple stay ahead in silicon innovation and maintain tight hardware-software integration.

This article first appeared on GuruFocus.