Broadcom signs multi-year chip supply deal with Apple until 2031

Yahoo Finance ·

Broadcom has confirmed a new multi-year agreement to supply Apple with custom application-specific integrated circuit (ASIC) silicon products until 2031. The expanded partnership builds on previous collaborations between the two companies and positions Broadcom as a central supplier to Apple for multiple generations of its products. Reports Component Makers Sector Scorecard - Thematic Intelligence GlobalData Reports Huawei Technologies Co. Ltd. Partner Ecosystem Profile GlobalData The gold standard of business intelligence. Experience unmatched clarity with a single platform that combines unique data, AI, and human expertise. The semiconductor group will develop and deliver a range of bespoke silicon components for use in upcoming Apple devices across various product lines. The agreement comes at a time when investors have expressed concerns over Apple’s efforts to replace external suppliers with its own in-house chip designs. Despite Apple’s investments in developing proprietary processors and modems, the company will continue to rely on Broadcom for complex custom silicon, according to the terms outlined in the new arrangement. Broadcom has previously supplied key components for Apple products, including radio frequency chips used in iPhones for cellular connectivity, as well as Wi-Fi, Bluetooth, and other networking semiconductors. According to analysts cited by Reuters , Apple is responsible for approximately 20% of Broadcom’s annual revenues. In 2023, the two companies entered into a separate multi-billion-dollar agreement for the development and manufacturing of 5G radio frequency components, such as surface acoustic wave (FBAR) filters. The FBAR filters are manufactured at Broadcom’s major facility in Fort Collins, Colorado, alongside other sites in the US. As demand for custom chips rises, driven in part by the increased use of advanced processors for AI inference, the market for such components has become highly competitive. The requirement for chips tailored to specific applications, such as responding to user queries with AI models, has boosted orders among technology firms. Apple also partners with Taiwan Semiconductor Manufacturing Company (TSMC) for its in-house processors, including the M-series chips powering Mac computers and the A-series chips used in iPhones. TSMC has faced capacity constraints due to surging demand from firms developing AI hardware, such as Nvidia. In April, Apple CEO Tim Cook noted that these supply pressures had affected iPhone sales. Apple is also said to be in talks with Intel regarding production of some chips in the US, though analysts suggest large-scale manufacturing is unlikely before late 2027, the news agency reported. Broadcom has also announced agreements with other technology firms this year. In April 2026, the company agreed to develop and provide next-generation tensor processing units for Google and expanded its deal with Anthropic, which will gain access to around 3.5GW of computing capacity from 2027. Last month, Broadcom partnered with OpenAI to launch the Jalapeño Intelligence Processor , with involvement from Celestica on the platform’s system integration and production. For its second quarter ended 3 May 2026, Broadcom reported revenue of $22.18bn, an increase of 48% compared to the previous year, and GAAP net income of $9.3bn, up 88% year-on-year. The company’s third-quarter guidance forecasts revenue of about $29.4bn, with non-GAAP operating income expected at roughly 67% of revenue and adjusted EBITDA at approximately 68% of revenue. Reports Component Makers Sector Scorecard - Thematic Intelligence Reports Huawei Technologies Co. Ltd. Partner Ecosystem Profile

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