In a move that underscores the enduring strength of one of tech’s most important supplier relationships, Broadcom and Apple have agreed to extend their technology collaboration through 2031. The companies entered into new multi-year, long-term agreements under which Broadcom will continue developing and supplying a range of custom ASIC silicon products for multiple generations of Apple devices.
The extension, disclosed via regulatory filing, builds on decades of partnership and reinforces Apple’s strategy of securing long-term supply agreements with key semiconductor partners to ensure supply-chain resilience.
What the Deal Covers
Broadcom has long been a critical supplier to Apple, providing:
• Custom radio frequency (RF) chips used in iPhones
• Wi-Fi and Bluetooth connectivity solutions
• Other networking semiconductors
Even as Apple has aggressively brought more silicon in-house — designing its own M-series processors for Macs and iPads, and recently introducing its own cellular modems — the company continues to rely heavily on Broadcom for advanced wireless connectivity and RF components.
The new agreements cover custom ASIC development across multiple future product generations, giving both companies multi-year visibility and stability.
Background: A Proven Track Record
This extension follows the companies’ 2023 multibillion-dollar agreement, under which Broadcom was tasked with developing and manufacturing 5G radio frequency components (including FBAR filters) and cutting-edge wireless connectivity solutions. That deal highlighted Broadcom’s manufacturing capabilities in the United States and strengthened Apple’s domestic supply chain.
Apple remains one of Broadcom’s largest customers, accounting for approximately 20% of Broadcom’s annual revenue according to analyst estimates. The long-term nature of the new agreements provides significant revenue predictability for Broadcom while allowing Apple to plan its product roadmap with confidence.
Market Reaction
News of the extended partnership sent Broadcom shares higher, rising nearly 4% in premarket trading on the day of the announcement. The market clearly viewed the deal as a strong vote of confidence in Broadcom’s custom silicon capabilities and its position as a key enabler of Apple’s ecosystem.
Why This Matters
In today’s semiconductor landscape, custom ASICs are increasingly vital. While much of the industry spotlight has been on AI accelerators and high-performance computing, specialized chips for wireless connectivity, RF front-ends, and power management remain foundational to premium consumer devices like the iPhone, iPad, and Apple Watch.By locking in this partnership through 2031, Apple is ensuring it has reliable access to advanced custom silicon for the wireless and connectivity features that are critical to device performance, battery life, and 5G/6G readiness. For Broadcom, the deal solidifies its role as a strategic partner to one of the world’s most valuable companies and demonstrates the strength of its custom ASIC business.
Looking Ahead
This extension comes at a time when both companies are navigating rapid technological change — from AI integration in consumer devices to the evolution of wireless standards. The long-term agreement gives Broadcom the runway to invest in next-generation process technologies and design innovations tailored specifically to Apple’s needs.For investors and industry watchers, the message is clear: the Broadcom-Apple relationship remains one of the most important and durable partnerships in the semiconductor industry.
MacDailyNews Take: Apple gets supply certainty and cutting-edge custom silicon. Broadcom gets multi-year revenue visibility with its largest customer. It’s a win-win that should benefit both companies, and Apple customers, into the next decade.
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