- Apple extends partnership with Broadcom to supply chips until at least 2031
- Development of next-generation C2 modem may still be underway
- Broadcom and Apple investors happy with rising stocks
Apple has extended its chip supply partnership with Broadcom through 2031, signing new agreements covering chip development and supply of the company’s next generations of silicon.
Broadcom remains a key supplier of radio (RF) chips, Wi-Fi chips, Bluetooth chips and other networking hardware, even as Apple has successfully replaced several components with in-house alternatives like its high-performance M-series chips and recent C-series cellular modems.
By signing Broadcom for another five years, it could indicate that Apple does not yet intend to replace all chips with in-house production, which is good news for third-party suppliers.
The expansion is major news for Broadcom in particular, which attributes about a fifth of its revenue to supplying Apple. The extension to 2031 provides the chipmaker with long-term revenue visibility and greater certainty for future product planning.
For Apple, this means more time to develop its own silicon with guaranteed supply from Broadcom. “Locking Broadcom until 2031 brings certainty to the supply chain at a time of chip shortages and saves Apple from having to procure key components for the iPhone,” commented Emarketer analyst Jacob Bourne (via PK Press Club).
However, vague wording regarding custom ASIC silicon has led some to believe that Apple may explore broader production of chips from Broadcom, including AI accelerators and other AI-supporting hardware.
Broadcom shares rose about 4% following the announcement, confirmed by PK Press Club. Apple shares are also back, after a slight decline following the company’s annual WWDC developer conference.
Looking ahead, Apple is reportedly working on a next-generation C2 modem that could even support mmWave, meaning it could be added to more devices like the full iPhone 18 family, reducing the need for third-party supply.
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