Broadcom has extended its custom chip development and supply agreement with Apple until 2031. According to Reuters, the agreement covers radio frequency components, Wi-Fi, Bluetooth and network semiconductors in Apple products. In addition, the news once again highlights Apple’s large share of Broadcom revenues. Broadcom shares rose nearly 4 percent in premarket trading following the development.
Apple and Broadcom have been working together on the connectivity side of iPhone, iPad, Mac and other products for many years. However, the new extension indicates that the supply relationship between the two companies will continue until at least 2031. Reuters reports that Apple is one of Broadcom’s biggest customers. According to the news, Apple accounts for approximately 20 percent of Broadcom’s annual revenue.
Apple has increasingly brought chip design in-house in recent years. The company announced the C1 model, the first Apple-designed cellular modem, along with the iPhone 16e. It later featured the C1X modem in the iPhone Air, iPhone 17e and some iPad models. Apple announced that the C1X runs up to two times faster than the C1.
On the other hand, Apple continues to use Broadcom’s wireless connection and radio frequency components when developing its own modems. Broadcom’s parts for Apple products include custom RF components, Wi-Fi and Bluetooth connectivity solutions, and other networking semiconductors. These components play important roles in terms of wireless connection performance and power consumption of the devices. Apple’s emphasis on its own chips on the modem side does not sever its ties with Broadcom in the short term.
Broadcom continues to provide connectivity chips while Apple develops its own modems
The previous major agreement between Apple and Broadcom was signed in 2023. At the time, the companies established a multi-year, multibillion-dollar collaboration for 5G radio frequency components to be produced in the United States. According to Apple’s statement, Broadcom has developed 5G RF components and wireless connectors, including FBAR filters. Additionally, Apple announced that these filters will be designed and manufactured at various US manufacturing and technology centers, including Broadcom’s Fort Collins facility in Colorado.
In addition, the new agreement provides a current example of Apple cooperating different supply channels on the connection side. The company highlights its own solutions such as C1 and C1X on the cellular modem side. However, it continues to work with Broadcom on Wi-Fi, Bluetooth, RF filters and network semiconductors. The latest extension reported by Reuters reveals that these product groups will continue to be included in Apple’s supply plan until 2031.
Cellular modem, Wi-Fi, Bluetooth and RF components work together in iPhone, iPad, Mac and wearable devices. While Apple develops its own modems, Broadcom’s wireless and radio frequency components continue to be included in the product family. The approximately 4 percent rise in Broadcom stock in pre-market trading following the news also shows that investors reacted quickly to the deal.