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Apple plans to phase out the technology that currently powers its Bluetooth and Wi-Fi connections in favor of custom chips, further reducing its dependency on the third-party providers, Bloomberg reported on Thursday.

According to Bloomberg, the company has been developing the chip -- code-named Proxima -- for several years. The chip is expected to debut in iPhones and smart home devices starting next year. The parts are currently supplied by Broadcom.

A representative for Apple did not immediately respond to a request for comment.

This move would align with Apple's ongoing effort to design more of its own core components and expand its hardware ecosystem. A custom-made chip could also improve product performance and better power advanced features like AI on its devices.

Read more: Apple May Ditch Qualcomm's 5G Modems in Some 2025 iPhones

The company is also expected to introduce its own cellular modem chips in 2025. It currently produces its own M chip line for its Mac computers.

That's not the only Apple news making headlines. The company also plans to begin producing AirPods in India for the first time in early 2025, diversifying some of its production away from China, according to another Bloomberg report.

Last year, Foxconn invested $200 million to build a new plant in India to manufacture the AirPods after it won the order to make the wireless earbuds for Apple.