Apple Developing Custom Chips for Smart Glasses and More

Apple is maintaining its focus on in-house hardware production, currently developing a new line of chips for future devices, as reported by Bloomberg. These processors are expected to power innovations such as smart glasses, AI-enhanced servers, and the upcoming generations of Mac computers.

One notable project includes a custom chip tailored for smart glasses. These glasses are anticipated to support features like voice commands, photo capture, and audio playback, although they are not designed to be full augmented reality (AR) devices. The chip will leverage low-power components used in the latest Apple Watch models but will be modified for reduced energy consumption and multiple camera support.

While Apple has remained tight-lipped about these potential projects, speculation suggests that chip production for the smart glasses may commence by late 2026 or early 2027, with products possibly launching within two years. Taiwan Semiconductor Manufacturing Co. is expected to handle the fabrication of these chips.

Industry analysts indicate that Apple has been working on smart glasses for several years, aiming to create full AR devices that would seamlessly overlay digital data onto real-world environments. However, the technology is not yet ready for everyday use. In the meantime, Meta has made strides in this area by launching smart glasses in collaboration with Ray-Ban, while Apple appears to be opting for a simpler version without AR capabilities in its initial offering.

According to reports, Apple is developing both AR and non-AR glasses, referred to internally by the codename N401, previously labeled N50. CEO Tim Cook is reportedly eager for Apple to establish a strong presence in this market. Meanwhile, Meta plans to introduce a premium model of its Ray-Ban glasses featuring a display later this year, with fully functional AR glasses projected for 2027.

Apple’s non-AR glasses may include cameras that scan the user’s surroundings and employ AI to offer assistance, paralleling Meta’s current approach. The company seems to be taking a measured approach, waiting for advancements in AI software before fully launching its product line.

In addition to smart glasses, Apple is investigating various upgrades for its existing product lineup. Engineers are reportedly testing features such as cameras in AirPods and smartwatches, which would utilize the upcoming custom chips. Codenamed “Nevis,” the Apple Watch with camera features is aimed for potential release by 2027, while the AirPods model, dubbed “Glennie,” is also in development.

Apple is also preparing new processors for its Mac line, including the M6 (Komodo), M7 (Borneo), and another high-end chip called “Sotra.” Additionally, an upgrade for the iPad Pro and MacBook Pro featuring the M5 chip is anticipated later this year.

The internal chip development efforts align with Apple’s broader strategy to gain complete control over its hardware ecosystem. Led by Johny Srouji, Apple’s hardware team has been expanding its offerings; earlier this year, the company introduced its first in-house modem chip with the iPhone 16e, while a more advanced version, termed C2, is scheduled for a 2026 release.