Broadcom and Apple have expanded one of the technology industry’s most important semiconductor partnerships by extending their custom chip agreement through 2031. Under the new multi-year deal, Broadcom will continue to design, develop and supply custom application-specific integrated circuits (ASICs) for future generations of Apple devices. Importantly, the move gives both companies long-term certainty, ensuring Apple has access to critical chip technologies while Broadcom secures business from its biggest customer for the rest of the decade.
The partnership is especially significant because Apple contributes about 20% of Broadcom’s annual revenue, making it the chipmaker’s largest customer. Broadcom has been supplying Apple with key wireless and connectivity chips for years, including radio-frequency (RF) chips used for 4G and 5G communication, Wi-Fi and Bluetooth chips, and other networking semiconductors.
The deal also shows that Apple will continue working with specialized chip partners even as it develops more of its own silicon. Over the past several years, Apple has designed its own A-series chips for iPhones, M-series processors for Macs and iPads, and recently introduced its first in-house C1 cellular modem. However, wireless communication technology is highly complex and requires years of engineering expertise, making Broadcom an important partner.
This agreement builds on the companies’ multibillion-dollar partnership announced in 2023, under which Broadcom agreed to develop and manufacture advanced 5G radio-frequency components for Apple. That deal was part of Apple’s wider effort to strengthen advanced manufacturing and secure long-term access to important semiconductor technologies. Extending the partnership until 2031 also shows Apple’s strategy of signing long-term supply agreements with key suppliers to improve supply-chain stability.
The timing of the announcement is important because demand for custom-designed chips has increased rapidly with the growth of AI, cloud computing and advanced networking. Many large technology companies are investing in custom silicon because it delivers better performance, lower power consumption and tighter integration with their own hardware and software than standard chips. Broadcom has become one of the world’s leading companies in designing these custom chips and has expanded similar partnerships with several major AI and cloud companies. Meanwhile, after the disclosure of the extended partnership, Broadcom’s shares climbed around 4% in premarket trading.