Apple and Broadcom extend deal through 2031

Broadcom, Apple extend chip supply deal through 2031

July 6, 2026 8:07 AM

July 6 (Reuters) - Broadcom ‌said on ​Monday ​it has agreed to expand its partnership with Apple through 2031 to develop ‌and supply a range of custom chips, sending ⁠the shares of the chipmaker up nearly 4% in ‌premarket trading.

Broadcom has been ‌a supplying key components to Apple for a very long time, including custom radio frequency chips ​used in iPhones, Wi-Fi and Bluetooth connectivity chips and other networking semiconductors.

Apple is one ⁠of Broadcom's largest customers. The iPhone maker accounts for about 20% of ​its annual revenue, according to analysts, making it a critical contributor to the ​chipmaker's business.

The extended partnership reinforces Apple's ‌strategy of locking in long-term supply agreements with key chipmakers to bolster the ⁠resilience of its supply chain.

In 2023, the companies announced a multibillion-dollar agreement for Broadcom to develop and ⁠manufacture 5G radio frequency components.

The boom in inference - the process ​by which models respond to user queries - has made custom chips crucial, increasing the orders for advanced processors and ‌intensifying competition.

While Apple has increasingly designed its own processors and, more recently, its ‌C1 cellular modem, it continues to rely on ⁠Broadcom for key ‌wireless connectivity and ​radio frequency components.

Source: Reddit r/apple via Reddit r/AAPL