- Apple extends partnership with Broadcom to supply chips until at least 2031
- Next-generation C2 modem development could still be underway
- Broadcom and Apple investors are happy with rising stocks
Apple has extended its partnership with Broadcom to supply chips through 2031, signing new deals covering chip development and the supply of the company’s own next generations of silicon.
Broadcom remains a key supplier of radio (RF) chips, Wi-Fi chips, Bluetooth chips and other networking hardware, even though Apple has successfully replaced several components with in-house alternatives such as its high-performance M-series chips and recent C-series cellular modems.
By hiring Broadcom for another five years, it may indicate that Apple still has no immediate plans to replace all chips with in-house production, which is good news for third-party suppliers.
The extension is important news for Broadcom in particular, which attributes about a fifth of its revenue to Apple supply. The extension through 2031 provides the chipmaker with long-term revenue visibility and greater certainty for future product planning.
For Apple, it means more time to develop its own silicon with guaranteed supply from Broadcom. “Securing Broadcom until 2031 buys supply chain certainty at a time of chip shortages and prevents Apple from having to acquire key components for the iPhone,” commented Emarketer analyst Jacob Bourne (via PakGazette).
However, vague wording about custom ASIC silicon has led some to believe that Apple could be exploring broader production of Broadcom chips, including AI accelerators and other AI-compatible hardware.
Broadcom shares rose about 4% following the announcement, confirmed by PakGazette. Apple shares have also risen again, after a slight drop following the company’s annual WWDC developer conference.
Looking ahead, Apple is believed to be 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, ultimately reducing the need for third-party supply.
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