en.Wedoany.com Reported - Apple and Broadcom have extended their chip supply cooperation agreement to 2031, solidifying a key partnership in wireless components and artificial intelligence chips.
Although neither party disclosed the financial terms of the agreement, this renewal extends a collaboration that began years ago and expands a multi-year commitment signed in 2023 to develop and manufacture 5G network radio frequency components. Broadcom has supplied Apple with radio frequency chips for iPhone mobile connectivity for years, as well as semiconductors that manage network functions such as WiFi and Bluetooth.
According to analyst estimates, Apple accounts for approximately 20% of Broadcom's annual revenue, making the iPhone maker one of its largest customers. This renewal reduces concerns that Apple might gradually replace Broadcom with fully in-house solutions, despite Apple's progress in designing its own processors, including the A-series and M-series chips, as well as the new C1 modem debuting on the iPhone 16e. Apple still relies on Broadcom for certain critical wireless and radio frequency components, a situation expected to persist at least until the end of this decade.
As part of the new agreement, Broadcom will also participate in designing Apple's future chips for artificial intelligence servers, internally codenamed "Baltra," aimed at supporting the cloud infrastructure that powers Apple Intelligence services. This renewal comes at a sensitive time for Apple's supply chain, as the AI boom pressures TSMC's production capacity, with the foundry's priority shifting to major clients like Nvidia. Although Apple will continue to produce processors at TSMC, strengthening its alliance with Broadcom allows it to secure critical wireless component supplies and mitigate risks in an industry where chip acquisition has become a strategic advantage.
Meanwhile, Apple is negotiating with Intel to produce some semiconductors in the United States, but analysts do not expect mass production before the end of 2027.
