Broadcom Inc. shares climbed over 5% on Monday after the semiconductor giant announced an extension of its long-standing chip supply partnership with Apple Inc. through 2031. The deal reinforces Broadcom’s position as a critical supplier of custom silicon for multiple generations of Apple products.
The agreement, disclosed in an SEC filing, expands the companies' collaboration on application-specific integrated circuit (ASIC) products. Broadcom will continue to develop and supply a range of custom chips, including radio frequency, Wi‑Fi, Bluetooth, and other networking semiconductors, that go into iPhones, iPads, and Macs. Apple already accounts for roughly 20% of Broadcom’s annual revenue, making the extension strategically vital for the chipmaker.
The new multi‑year pact builds on a multibillion‑dollar 2023 deal that covered 5G radio frequency components. While Apple has increasingly designed its own chips, such as the C‑series cellular modems, it still relies on Broadcom for wireless connectivity. The prolonged partnership helps Apple secure long‑term chip supply amid tightening manufacturing capacity and rising demand for artificial intelligence processors.
Broadcom is also expanding its AI chip business, working with other tech giants like Alphabet and Meta. The wider semiconductor market faces surging costs—memory chip prices have spiked as much as 98% in early 2026—which recently pushed Apple to raise MacBook and iPad prices. By locking in Broadcom’s custom silicon through 2031, Apple aims to mitigate future supply‑chain disruptions and capacity bottlenecks that have previously impacted iPhone sales.
