Apple (AAPL, Financials) is developing a new generation of chips to power smart glasses, AI infrastructure, and upcoming MacBooks, Bloomberg reported Thursday.

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Apple is advancing a chip for its first smart glasses using low-energy components found in the Apple Watch. The chip will power multiple cameras and is expected to enter mass production by late 2026 or 2027. The glasses will compete with Meta Platforms' (META, Financials) Ray-Ban product.

The chip will be manufactured by Taiwan Semiconductor Manufacturing Company.

The iPhone maker is also designing new chips for Mac computers expected to be called the M6 and M7 as well as processors for AI servers to support Apple Intelligence, its on-device AI suite. That platform includes tools for summarizing alerts, rewriting emails, and integrating ChatGPT.

Earlier this year, Apple unveiled its first in-house modem chip, expanding its control over critical device components.

Apple's moves reflect a broader effort to reduce reliance on third parties and enhance its hardware-AI integration as competitors ramp up offerings in the wearables and AI sectors.

Investors will be watching for updates on mass production and product launches tied to these chips.

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This article first appeared on GuruFocus.

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