Overview
- Broadcom disclosed in an SEC filing that it and Apple expanded their technology collaboration through 2031 by signing new multi‑year agreements for Broadcom to develop and supply custom ASIC silicon for multiple future Apple products, a move first reported on Monday, July 6.
- The contracts cover radio‑frequency components, Wi‑Fi and Bluetooth connectivity chips and other networking semiconductors, and the companies did not disclose financial terms.
- Broadcom shares jumped roughly 4 to 5 percent in premarket trading on the announcement as investors welcomed the multi‑year revenue visibility from one of Broadcom’s largest customers.
- Apple has moved many processors in‑house but continues to rely on specialist suppliers for RF and connectivity; analysts cited by several outlets estimate Apple accounts for about 20 percent of Broadcom’s annual revenue.
- Reports say Broadcom technology may be used in Apple’s in‑development AI server chips codenamed Baltra but that deployment is unconfirmed and still reported as a company plan, and the deal fits a wider industry trend of locking long‑term chip supply as AI demand strains foundry capacity and raises component prices.