Apple unveils neural chip for iPhones and Watches

Apple is reportedly testing a prototype of its next major hardware upgrade: a neural-processing chip that will let future iPhones and Apple Watches run artificial-intelligence models entirely on-device.

Sources familiar with the project tell 9to5Mac that the unnamed chip is now in limited trial production at TSMC’s advanced labs in Taiwan. Unlike the current Neural Engine in the A-series and M-series chips, which handles only lightweight AI tasks, this new component is said to be powerful enough to run a full large-language model locally—no cloud connection required. That would give Apple a privacy edge over rivals whose AI features still rely on remote servers.

The move comes as Apple races to catch up with Google and Samsung, both of which have already launched phones with on-device AI features for photo editing, voice assistants, and real-time translation. Analysts estimate that a chip capable of running a 7-billion-parameter model could appear in shipping devices by mid-2027, giving Apple a two-year head start on true offline AI.

If successful, the breakthrough could redefine how consumers use their devices. Tasks that now require sending data to the cloud—personal health monitoring, biometric security, and predictive text—would become instant and private. Apple’s next Watch, expected in fall 2026, is also tipped to include a stripped-down version of the chip for advanced fitness and health analytics.