06.07.2026
3 min
10
Apple has extended its partnership with Broadcom through 2031 by signing a new long-term agreement to develop and supply specialized chips. The deal strengthens the company’s supply chain amid rapidly growing demand for components used in artificial intelligence.
Broadcom announced that it has extended its partnership with Apple through 2031. Under the new agreement, the two companies will continue to jointly develop and supply specialized chips used in Apple products. The news was well received by investors, sending Broadcom’s shares up by more than 5%.
Broadcom has long been one of Apple’s key suppliers. The company manufactures radio frequency chips for the iPhone, Wi-Fi and Bluetooth modules, as well as other networking semiconductor components. Despite Apple’s continued push to develop its own chips, including the C1 modem, the company still relies on Broadcom for wireless and radio frequency technologies.
According to analysts, Apple accounts for roughly 20% of Broadcom’s annual revenue, making it one of the chipmaker’s largest customers. The new agreement has eased investor concerns that Apple might gradually replace Broadcom with fully in-house components.
The partnership also aligns with Apple’s strategy of securing long-term agreements with key suppliers to strengthen its supply chain against global semiconductor disruptions. In 2023, the two companies signed a multibillion-dollar deal to develop and manufacture 5G radio frequency components.
Daniel Newman, CEO of the Futurum Group, commented on the agreement:
“For Broadcom, it’s a five-year annuity from the world’s most demanding customer, stacked on top of the hyperscaler XPU ramp. Broadcom wins either way the AI cycle breaks.”
Another major factor behind the agreement is the growing shortage of AI chips. The rapid adoption of artificial intelligence models and the surge in AI workloads have sharply increased demand for specialized processors, intensifying competition for manufacturing capacity. As a result, Apple is seeking to secure reliable access to critical components well in advance.
At the same time, Apple continues to manufacture its M-series and A-series processors through TSMC, which remains the company’s primary contract chip manufacturer.
In recent years, Apple has steadily expanded its portfolio of in-house chips, gradually replacing third-party solutions. However, the company still cannot fully move away from Broadcom, as it continues to supply several critical wireless communication components. The new agreement guarantees that this partnership will continue through at least 2031.
The new deal between Apple and Broadcom highlights that even the world’s largest technology companies, despite investing heavily in their own chip development, still depend on strategic partners. As the AI boom continues, securing a stable supply of critical components has become just as important as technological innovation itself.
