The chip, code-named Proxima, has been under development for several years and is now slated to go into the first iPhones and smart home devices produced in 2025, the report said, citing people familiar with the matter.
The iPhone maker's in-house chips will be produced by Taiwan Semiconductor Manufacturing Co, the report added.
At its annual developer conference in June, Apple said that it plans to use its own server chips to help power artificial intelligence features on its devices.
The move is separate from Apple's reported plans to launch its long-awaited series of cellular modem chips next year, which will replace components from longtime partner Qualcomm, the report added.
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