Broadcom Inc (NASDAQ:AVGO, XETRA:1YD) has extended its chip partnership with Apple Inc (NASDAQ:AAPL, XETRA:APC) through 2031, expanding a long-running supply agreement covering custom semiconductor development and production.
The expanded arrangement, disclosed by Broadcom in a regulatory filing, builds on a relationship that has lasted for years
Apple is widely viewed as one of Broadcom’s largest customers and is estimated to account for roughly 20% of the chipmaker’s annual revenue. Under the revised deal, Broadcom will continue developing custom application-specific integrated circuit (ASIC) chips for Apple, with the company stating in the filing that the components will be used across “multiple generations of Apple products.” Financial terms were not disclosed. Broadcom has historically supplied Apple with a range of connectivity and radio frequency components used in devices such as iPhones, including Bluetooth, Wi-Fi and cellular-related semiconductors.
While Apple has been increasing its internal chip design efforts, rolling out in-house modem technologies such as the C1 and C1X and introducing proprietary wireless chips in some products, it continues to rely on Broadcom for certain networking and RF components. The companies previously signed a multibillion-dollar agreement in 2023 focused on 5G radio frequency components manufactured in the United States. The latest extension broadens the scope of the partnership as demand increases for custom silicon used in artificial intelligence-related systems and infrastructure.