Apple reportedly began working on an in-house mobile modem, a move tipped to reduce the device maker’s reliance on Qualcomm components.

Bloomberg reported Apple’s SVP of hardware technologies Johny Srouji announced the step in an employee meeting, adding the development of the modem will enable a “key strategic transition” for the company.

Srouji was cited as saying the development was a long-term strategic investment which was critical to enabling products and adding to “a rich pipeline” of future innovative technologies.

The Apple executive noted the company’s takeover of Intel’s modem business in 2019 boosted its efforts in building the required team of engineers, Bloomberg reported, noting the company also produces a wireless chip for its Apple Watch and location silicon for iPhones.

Apple is currently using Qualcomm components for its 5G-enabled smartphones, with a current deal between the pair expected to end in 2025, the news outlet noted.

Earlier reports stated Apple aimed to begin using its own 5G modem in 2022.