Apple and Broadcom have expanded their long-standing chip supply deal, extending their partnership through 2031. This agreement covers the development and provision of custom semiconductor components that remain integral across Apple’s product range.
Despite Apple’s growing focus on proprietary chip design, including in-house cellular modems, it continues to rely heavily on Broadcom for wireless connectivity and radio frequency parts. Broadcom supplies key components such as Wi-Fi, Bluetooth, and other networking semiconductors embedded throughout Apple devices.
The companies initially signed a multibillion-dollar contract in 2023, specifically targeting 5G radio frequency components produced in the United States. Apple stands as one of Broadcom’s top customers, responsible for a significant portion of the chipmaker’s annual revenue. Following the announcement of this extension, Broadcom’s shares increased in early trading.
While Apple pushes forward with internal chipset innovation, Broadcom’s role remains crucial for delivering wireless performance and connectivity enhanced by American manufacturing capabilities. Their long-term collaboration secures supply stability essential for Apple’s future device launches and network integration.