Broadcom, Apple Extend Custom Chip Partnership Through 2031

Broadcom has extended and expanded its long-running technology partnership with Apple through 2031, signing new multi-year agreements to develop and supply a range of custom application-specific integrated circuit (ASIC) silicon products for multiple generations of Apple devices.

The announcement was disclosed in a Form 8-K filed with the US Securities and Exchange Commission on July 6. Broadcom said the agreements expand the companies’ existing collaboration but did not disclose financial terms, product categories or expected shipment volumes.

Broadcom has been one of Apple’s key semiconductor suppliers for more than a decade, providing wireless connectivity chips, radio-frequency components and other custom silicon used across iPhones and other Apple devices. 

In 2023, the companies announced a separate multi-billion-dollar agreement to develop 5G radio frequency components manufactured in the United States. 

While Apple has since introduced more in-house silicon, including proprietary networking chips in some products, Broadcom has remained a strategic supplier for specialised custom semiconductor designs.

Analysts cited in a Reuters report said that Apple accounts for 20% of Broadcom’s revenue. 

The Apple agreement also reinforces Broadcom’s strategy of securing long-term custom silicon partnerships with some of the world's largest technology companies.

In recent months, the company has expanded similar multi-year chip development agreements with Google, Meta and OpenAI as demand for bespoke AI processors accelerates.

Last month, OpenAI unveiled its first custom AI inference chip, Jalapeño, developed with Broadcom and manufactured by TSMC.

Broadcom reported another record quarter in June, with revenue rising 20% year over year to $15 billion, driven by continued demand for AI infrastructure. 

Revenue from the company’s AI semiconductor business climbed 46% to $4.4 billion, while Broadcom projected AI revenue of about $5.1 billion for the current quarter.

Broadcom’s AI chip business is also anchored by its long-standing partnership with Google, which has collaborated with the company on every generation of its custom Tensor Processing Units (TPUs) since 2014. 

In April, the companies extended that relationship through 2031 under a long-term agreement in which Broadcom will develop and supply future generations of Google’s custom AI chips, while also providing networking and other components for Google’s next-generation AI racks. 

The TPUs power Google’s internal AI workloads as well as Google Cloud services, positioning Broadcom at the centre of one of the industry’s largest custom AI silicon programmes.