Apple turned to Taiwan Semiconductor Manufacturing Co (TSMC) to produce its first in-house-designed 5G modem starting in 2023 as the iPhone maker looks to diversity its supply chain, Nikkei Asia reported.

The contract chip manufacturer will mass produce the modem using its 4nm processing technology, the newspaper wrote adding the product will feature a power management chip designed by Apple.

Apple reportedly will use the new modem in its flagship products in 2023. The latest iPhones run Qualcomm Snapdragon modems.

Last week, Qualcomm forecast it would supply around 20 per cent of iPhone modems by 2023, AppleInsider reported.

TF International Securities analyst Ming-Chi Kuo reportedly predicted in May Apple needed at least two years to use its own 5G modem in an iPhone.

TSMC is a long-time component supplier for Apple, which relies on the company to produce its self-designed chips for iPhones and Macs, Nikkei Asia reported.