Broadcom and Apple Extend Custom Chip Partnership Through 2031

Broadcom announced Monday that it will continue supplying custom silicon to Apple until the end of the decade, a move that reportedly reduces worries about the iPhone maker's dependence on the supplier.

Broadcom and Apple lock in long-term chip supply deal. The pact sent the chipmaker's shares up nearly 4 percent in premarket trading.

Broadcom has provided Apple with essential parts for years. Those components include radio-frequency devices that enable cellular connections in iPhones as well as semiconductors supporting Wi-Fi, Bluetooth and other networking functions.

Apple represents major revenue share for Broadcom. The iPhone maker generates roughly 20 percent of Broadcom's yearly sales according to analysts, positioning it among the supplier's biggest clients.

Even as Apple advances its in-house silicon portfolio, which now features the C1 modem, the company continues to source wireless and radio-frequency parts from Broadcom. The arrangement underscores Apple's approach of striking extended contracts with critical vendors to strengthen supply-chain stability.

Deal builds on prior multibillion-dollar commitment. The companies first disclosed a multibillion-dollar pact in 2023 covering the creation and production of 5G radio-frequency components. This latest agreement carries the collaboration forward through 2031.