Broadcom extends Apple chip pact through 2031; shares up 5.3%

Broadcom extended its partnership with Apple through 2031 to develop and supply a range of custom ASIC silicon products for multiple generations of Apple devices, the company disclosed in an SEC filing. Broadcom shares rose 5.3% in Monday trading following the announcement. Financial terms were not disclosed.

The SEC filing states: “Broadcom Inc. (“Broadcom”) and Apple Inc. (“Apple”) have agreed to expand their long-standing technology collaboration through 2031 by entering into new multi-year long-term agreements for Broadcom to develop and supply a range of custom ASIC silicon products for use in multiple generations of Apple products.” Broadcom said the agreements cover development and supply of custom ASIC silicon products across multiple Apple product generations.

Broadcom has supplied Apple with radio-frequency chips, Wi‑Fi and Bluetooth components and other networking semiconductors used in iPhones and other devices. The companies previously announced a multibillion-dollar deal in 2023 for Broadcom to develop and manufacture 5G radio frequency components.

Analysts estimate Apple accounts for about 20% of Broadcom’s annual revenue, giving Broadcom longer-term revenue visibility from a major customer. Broadcom did not provide revenue projections tied to the new agreements.

Apple has invested in in-house chip design, producing A- and M-series processors and working on a C1 modem, but it continues to source wireless and RF components from Broadcom.

Demand for advanced and custom chips has risen with increased deployment of artificial intelligence workloads. That demand has put pressure on foundry capacity, with Taiwan Semiconductor Manufacturing Co. receiving heavy orders from companies building AI chips. Apple executives have warned that capacity constraints have affected iPhone sales. Apple is in talks with Intel about producing some chips in the United States, though analysts expect large-scale U.S. production to be unlikely before late 2027.

Broadcom has been developing AI-specific chips for major technology customers, including Alphabet and Meta Platforms. The expanded agreement with Apple will keep Broadcom supplying custom ASIC work while demand for advanced chips grows across the industry.

The two companies did not disclose specific financial terms for the extended contracts. The agreements formalize Broadcom’s role as a supplier of custom silicon for multiple upcoming Apple product generations through 2031.