Apple and Broadcom Extend Custom‑Chip Partnership Through 2031

Overview

• Broadcom disclosed Monday that it has agreed to extend its custom‑chip collaboration with Apple through 2031 to produce radio‑frequency parts, Wi‑Fi and Bluetooth chips, networking semiconductors and custom ASICs.
• The announcement sent Broadcom shares up about 4–5% in early trading and gives the chipmaker predictable demand from one of its largest customers, which analysts say accounts for roughly 20% of Broadcom’s revenue.
• The pact preserves Broadcom’s role in supplying specialized connectivity and RF components that work with Apple’s in‑house C‑series modems, signaling that Apple is unlikely to move entirely to self‑made cellular and connectivity silicon before 2031.
• Reporting indicates the extension covers ASIC work tied to Apple’s reported server AI program (codenamed Baltra), though those details remain based on industry reports rather than a separate company confirmation.
• The agreement builds on a 2023 U.S.‑focused RF manufacturing deal and reflects broader industry pressures—tight TSMC capacity and geopolitical supply concerns—that are pushing major tech firms to lock in long‑term chip supply arrangements.