THE APEX TIMES
Broadcom extends its Apple chip-supply partnership through 2031, focusing on custom ASIC silicon
The companies say Broadcom will continue developing and supplying bespoke chips used across Apple devices under a multi-year agreement that runs to 2031, reinforcing Broadcom’s role as a specialized supplier even as Apple builds more in-house silicon.
Broadcom said it has expanded its chip-supply partnership with Apple to run through 2031, with Broadcom set to develop and deliver custom application-specific integrated circuit (ASIC) silicon for multiple future Apple devices, according to a report citing Broadcom’s confirmation of the agreement. ASICs are purpose-built chips designed for specific device functions, rather than general-purpose components, which can make them harder to substitute quickly.
The announcement positions Broadcom as a long-term supplier of bespoke components across several product lines, the report said. While Apple designs many of its own processors, the expanded agreement indicates that the iPhone and other hardware roadmaps will still depend on external expertise for certain complex, tightly specified silicon needs.
Broadcom has supplied key wireless and networking components to Apple in the past, including radio-frequency chips used for cellular connectivity, along with Wi-Fi and Bluetooth-related semiconductors, the report noted. The latest arrangement, running to 2031, suggests Broadcom’s custom silicon work is expected to remain embedded in Apple’s hardware development cycle for multiple device generations.
The report also framed the extension as occurring amid ongoing investor scrutiny of how Apple manages its supplier mix and its strategy for replacing some externally sourced chips with internal designs. Even with Apple’s investments in proprietary processors and modems, the terms described in the announcement indicate Broadcom will continue to supply “complex custom silicon,” without detailing which specific chips or where they will appear first.
Beyond the new headline agreement, the report pointed to a separate multi-billion-dollar collaboration the two companies entered in 2023 for 5G radio-frequency components, including surface acoustic wave (FBAR) filters. FBAR filters, which are used to help manage indicates in wireless communications, are manufactured at Broadcom’s Fort Collins, Colorado facility, according to the report.
The level of disclosure in the publicly circulated coverage is limited. Broadcom and Apple, as described in the cited post, did not provide a breakdown of the devices covered, the number of chip designs, pricing, or expected order volumes. The companies also did not specify which portion of any revenue exposure is tied to the extension, beyond the broader implication that Apple’s custom-silicon sourcing will continue to include Broadcom’s capabilities through the end of the decade.
Why It Matters
- Extending a bespoke ASIC supply relationship to 2031 can reduce supply and design risk for Apple’s hardware plans, particularly for components that require deep engineering integration.
- For Broadcom, multi-year visibility around custom silicon demand can help stabilize forecasting and supports a longer runway for high-margin product work, even as Apple develops more of its own chips.
- The deal underscores how major tech companies still rely on specialized semiconductor partners for certain complex functions, even while internal silicon programs expand.
- If custom ASIC orders remain concentrated with a handful of suppliers, semiconductor procurement bargaining and capacity planning could become more important across the industry’s next hardware cycles.
Key Facts
- Broadcom confirmed an expanded multi-year custom chip-supply agreement with Apple running through 2031.
- Broadcom is expected to develop and supply custom ASIC silicon products for multiple future Apple devices.
- The report describes ASICs as purpose-built chips designed for specific functions within devices.
- The coverage links the extension to Broadcom’s prior role supplying Apple with cellular radio-frequency components and wireless semiconductors.
- The report also references a separate 2023 multi-billion-dollar collaboration for 5G radio-frequency components, including FBAR filters, manufactured in Fort Collins, Colorado.
- Investors have been watching Apple’s efforts to reduce reliance on external suppliers in favor of in-house designs, and the extended deal suggests Broadcom remains part of that mix.
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