Overview
- Broadcom announced that it will expand its multi-year supply and development deal with Apple to cover a broader range of custom chips through 2031.
- The agreement covers wireless connectivity and radio-frequency components that Broadcom has long supplied to Apple and builds on a 2023 multibillion-dollar pact for 5G RF parts.
- Apple continues to design major components in-house, including processors and a C1 modem, but still depends on specialist suppliers like Broadcom for key wireless and RF functions.
- Analysts say Apple represents about one-fifth of Broadcom’s revenue, and the announcement pushed Broadcom’s shares higher in early trading as investors priced in the commercial significance.
- Industry players say rising demand for AI inference workloads is increasing the value of custom chips and prompting device makers to lock in long-term supply deals, a trend that could reshape capacity and competition among chipmakers.