Overview
- Broadcom said Monday it expanded its partnership with Apple through 2031 to develop and supply a range of custom chips, and Broadcom shares rose about 4–5% in premarket trading on the news.
- The deal covers application-specific integrated circuits (ASICs) and wireless components such as radio frequency, Wi‑Fi and Bluetooth chips that Broadcom has long supplied for iPhones and other Apple devices.
- This extension builds on a 2023 multibillion-dollar agreement for US-made 5G RF components and specifies the chips will be used in multiple future generations of Apple products.
- Apple has been designing more of its own silicon — including the C1 and C1X modems with a C2 expected — but the deal makes clear some wireless and connectivity parts will remain third‑party for several years.
- Rising AI demand and constrained foundry capacity help explain the pact, which secures revenue for Broadcom (Apple is estimated to be about 20% of its sales) and could affect supply, manufacturing plans, and timing for Apple’s move to full vertical integration; reports also link Broadcom tech to Apple’s reported Baltra AI server chip project targeting 2026–2027.