Apple secures long-term custom chip supply from Broadcom, reinforcing its U.S. manufacturing commitment amid $430 billion investment plan.
Apple shares surged over 4% after renewing a multi-year agreement with Broadcom to supply custom ASIC silicon for Apple products through 2031. The deal extends a long-standing partnership critical to Apple’s hardware ecosystem.
The collaboration dates back to at least 2019, with Broadcom providing radio-frequency units and later wireless components for Apple’s 5G expansion. In 2023, the deal was part of Apple’s $430 billion pledge to invest in U.S. companies over five years, signaling continued reliance on external chip suppliers.
Details remain limited, but the agreement underscores Apple’s strategy to balance in-house chip development with key supplier relationships. Broadcom, which previously derived 20% of its revenue from Apple, gains stability amid broader semiconductor demand shifts.