Apple and Broadcom Extend Chip Supply Deal to 2031
Broadcom has agreed to extend its chip partnership with Apple through 2031, expanding a deal that covers the development and supply of a wide range of custom chips, Reuters reports.
Today's extension builds on an existing supply relationship between the two companies, which have worked together for years. Apple is one of Broadcom's largest customers, believed to account for about 20% of its annual revenue.
Apple has been steadily bringing chip design in-house, such as with its own C1 and C1X cellular modems, but many of Broadcom's wireless connectivity and radio frequency components remain in use. Broadcom's chips cover custom radio frequency components, Wi-Fi and Bluetooth connectivity, and other networking semiconductors found throughout Apple's lineup.
Apple and Broadcom signed a multibillion-dollar agreement in 2023 covering 5G radio frequency components manufactured in the United States. Broadcom shares rose nearly 4% in premarket trading today on the news.
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