Broadcom, Apple extend chip deal through 2031

• The extended partnership runs through 2031 and covers development and supply of custom chips including radio frequency components, Wi-Fi, Bluetooth, and networking semiconductors used in iPhones
• Apple is one of Broadcom's largest customers, with analysts estimating the iPhone maker contributes a major chunk of Broadcom's annual semiconductor business revenue
• The deal strengthens Broadcom's long-standing supplier relationship with Apple and secures a critical revenue stream for the chipmaker's semiconductor division

Summary

Key Development:

Broadcom and Apple announced an extended partnership agreement through 2031 for the development and supply of custom chips, expanding their existing long-term collaboration.

Companies and Products:

• Broadcom: Supplies critical components to Apple, including custom radio frequency chips for iPhones, Wi-Fi and Bluetooth connectivity chips, and networking semiconductors
• Apple: One of Broadcom's largest customers, representing a significant portion of the chipmaker's annual revenue

Market Implications:

The extension through 2031 provides substantial revenue visibility and stability for Broadcom's semiconductor business. Apple represents a major revenue contributor to Broadcom, with analysts estimating the iPhone maker accounts for a significant chunk of the chip supplier's annual earnings. This long-term commitment signals continued demand for custom semiconductor solutions in Apple's product ecosystem and reduces supply chain uncertainty for both companies.

The deal reinforces Broadcom's position as a strategic supplier in Apple's hardware infrastructure and demonstrates Apple's strategy of securing long-term partnerships with key component suppliers to ensure supply chain stability and custom chip development capabilities.

Strategic Context:

The partnership extension covers a broad range of custom chips, indicating deepening technical collaboration between the two companies. This move is particularly significant given ongoing industry focus on supply chain resilience and the increasing importance of proprietary chip designs in consumer electronics differentiation.

The announcement came on July 6, providing investors with clear visibility into Broadcom's semiconductor revenue streams for nearly a decade ahead.