Broadcom and Apple Lock In Custom Chip Partnership Through 2031

Broadcom has secured its role as a key Apple supplier with a multi-year chip deal extending through 2031. The agreement deepens the decade-long partnership between the two tech giants, covering custom 5G, connectivity, and other semiconductor components for Apple's iPhone, iPad, and future device lines.

Key Takeaways

Broadcom has secured its role as a key Apple supplier with a multi-year chip deal extending through 2031.
The agreement deepens the decade-long partnership between the two tech giants, covering custom 5G, connectivity, and other semiconductor components for Apple's iPhone, iPad, and future device lines.

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Broadcom has solidified its position as a cornerstone Apple supplier, signing a new multi-year agreement that extends their custom chip partnership through 2031. The deal, announced Monday, covers a range of semiconductor components including custom 5G connectivity chips, wireless charging controllers, and other proprietary silicon that powers Apple's ecosystem.

A decade-plus of collaboration

Apple and Broadcom have maintained one of the semiconductor industry's most consequential partnerships for over a decade. Broadcom's custom chips are integral to the iPhone, iPad, Mac, and Apple Watch lines, handling everything from wireless connectivity to power management.

The extended deal provides both companies with long-term strategic certainty. For Apple, it ensures a stable supply chain for critical components at a time when the global chip supply chain remains stretched by AI demand. For Broadcom, it locks in a revenue stream from the world's most valuable hardware manufacturer through the end of the decade.

The chip supply chain race

The announcement comes amid a frenzy of long-term chip supply agreements. Earlier on Monday, Micron signed a semiconductor supply agreement with Ford Motor Company for next-generation vehicles, while SK Hynix launched a $28 billion U.S. listing to fund massive capacity expansion.

The AI-driven memory super-cycle has strained global semiconductor supply chains, making long-term partnerships increasingly critical for both buyers and suppliers. Companies across industries — from automotive to consumer electronics — are racing to lock in chip supply through the end of the decade.

Apple's semiconductor strategy

The Broadcom deal is one piece of Apple's broader chip strategy. The company designs its own A-series and M-series chips in-house, reducing dependence on Intel and Qualcomm. However, it continues to partner with Broadcom for specialized components where the supplier's expertise in RF and connectivity silicon remains unmatched.

Financial terms of the deal were not disclosed, but Broadcom's semiconductor segment counts Apple among its largest customers, representing a significant portion of the company's annual revenue.