The deal secures Broadcom’s role as a key custom silicon supplier for Apple amid concerns over in-house chip development.
Apple has signed a multi-year agreement with Broadcom to supply custom application-specific integrated circuits until 2031. The deal reinforces Broadcom’s position as a critical supplier for Apple’s future product generations, including iPhones and other devices.
Broadcom currently provides Apple with radio frequency chips, Wi-Fi, Bluetooth, and networking semiconductors. Apple accounts for roughly 20% of Broadcom’s annual revenue, according to analysts. In 2023, the companies finalized a separate multi-billion-dollar pact for 5G radio frequency components.
The agreement follows investor concerns about Apple’s push to replace external suppliers with in-house designs. Despite Apple’s advancements in proprietary processors and modems, the deal ensures continued reliance on Broadcom for complex custom silicon.