- Apple extends Broadcom partnership to supply chips until at least 2031
- Development for the next generation C2 modem may still be ongoing
- Broadcom and Apple investors are happy as shares rise
Apple has extended its partnership with Broadcom to supply it with chips until 2031 and signed new agreements covering chip development and the supply of future generations of the company’s own silicon.
Broadcom remains a key supplier of radio (RF) chips, Wi-Fi chips, Bluetooth chips, and other networking hardware, although Apple has successfully replaced several components with in-house alternatives such as its high-performance M-series chips and newer C-series cellular modems.
By signing up Broadcom for another five years, it may indicate that Apple does not yet have immediate plans to replace all chips with its own production, which spells good news for third-party vendors.
The expansion is big news especially for Broadcom, which credits about a fifth of its revenue to supplying Apple. The extension until 2031 gives the chipmaker 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 in Broadcom through 2031 provides security in the supply chain at a time of chip scarcity and saves Apple from having to in-source key iPhone components,” commented Emarketer analyst Jacob Bourne (via Pakinomist).
However, vague wording around custom ASIC silicon has led some to believe that Apple could explore broader chip production from Broadcom, including AI accelerators and other AI-supporting hardware.
Broadcom shares rose about 4% after the announcement, confirmed by Pakinomist. Apple shares are also back up, after falling slightly after the company’s annual developer conference WWDC.
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 entire iPhone 18 family, ultimately reducing the need for third-party supply.
Follow TechRadar on Google News and add us as a preferred source to get our expert news, reviews and opinions in your feeds.
