Apple and Broadcom Extend Custom Chip Partnership Through 2031

Apple and Broadcom have agreed to extend their custom chip partnership through 2031, securing a steady supply of critical wireless components for future devices.



The extended agreement ensures Broadcom will continue supplying Apple with essential radio frequency chips used for cellular connectivity, alongside semiconductors handling Wi-Fi and Bluetooth. According to Reuters, the deal builds on a multibillion-dollar agreement the two companies established in 2023 to develop 5G networking components. Following the announcement, Broadcom shares rose more than five percent.


Apple accounts for roughly 20 percent of Broadcom's annual revenue, making it one of the chipmaker's largest customers. While Apple has spent billions developing its own silicon, including its in-house cellular modems, the company still relies heavily on Broadcom's specialized radio frequency components to make those systems function properly.

The agreement also reflects Apple's broader strategy of locking in long-term component supplies as demand for advanced semiconductors continues to surge. Apple relies on TSMC to manufacture its A-series and M-series chips, while growing AI demand has increased competition for production capacity. The company has also reportedly begun testing Intel production for some future chips, though significant manufacturing volume is still believed to be years away.

Component shortages and soaring demand for AI infrastructure are already affecting consumers. Unprecedented memory chip costs recently forced Apple to raise prices across its Mac and iPad lineups, an unusual mid-cycle adjustment that CEO Tim Cook previously warned was unavoidable. The extended partnership further strengthens Apple's efforts to build a more resilient supply chain by securing a long-term source for critical wireless components.