Apple locked in one of its most important chip suppliers for years to come.
Broadcom revealed in a securities filing that it has extended its longstanding technology partnership with Apple through 2031. The companies signed new multi-year agreements under which Broadcom will develop and supply custom chips for use in future generations of Apple products.
The deal is valued at over $30 billion, will lead to the production of more than 15 billion U.S.-made chips.
“Apple and Broadcom have a long history together, and this new phase of our partnership further accelerates our commitment to American manufacturing and innovation,” said Tim Cook, Apple’s CEO, in a statement.
Apple’s Broadcom deal reveals long-term chip strategy
Apple has increasingly brought wireless technologies in-house, designing chips such as its C1 cellular modem and N1 wireless chip to reduce its dependence on third-party suppliers for key functions like 5G, Wi-Fi and Bluetooth connectivity. Even so, the company continues to rely on partners including Broadcom for other specialized silicon, particularly custom networking and application-specific chips that support advanced computing and AI infrastructure.
Rather than replacing outside suppliers altogether, Apple has adopted a hybrid approach, designing its own chips that benefit the most from tight integration but also turning to industry specialists where they can offer unique expertise.
Broadcom is most definitely on the list of suppliers after announcing Monday in a SEC filing that it had renewed a “longstanding technology collaboration through 2031” with Apple.
And on Wednesday, Apple announced that its new agreement includes a $1.5 billion investment to enable Broadcom to expand and modernize its manufacturing facilities in Fort Collins, Colorado.
“The cutting-edge components built in Fort Collins are essential to delivering the incredible performance and connectivity our customers expect, and we’re proud to deepen our investments in U.S.-based suppliers that share our commitment to excellence and innovation,” said Cook.
The newly renewed deal highlights Apple’s continued reliance on Broadcom even as it designs more of its own silicon. While Cupertino increasingly makes its own chips, it still depends on Broadcom for a variety of specialized chips and networking technologies that help its devices communicate quickly and efficiently.
“Broadcom is proud to continue to work with Apple after decades of success together, and we share a strong commitment to American innovation,” said Hock Tan, Broadcom’s president and CEO. “With Apple’s newest commitment, we’re pleased to expand our manufacturing footprint in Fort Collins, where we create groundbreaking technology that connects people around the world.”
Apple extends Broadcom chip partnership through 2031
The partnership could become increasingly important as Apple expands its artificial intelligence efforts. In late 2024, reports indicated Apple was working with Broadcom on networking technology for its first AI server chip, part of the infrastructure expected to power Apple Intelligence and other AI services behind the scenes. Extending the relationship through the end of the decade suggests Broadcom will continue to play a significant role in those plans.
Apple says Broadcom will produce advanced radio frequency components — including FBAR filters — and advanced wireless connectivity technologies at the Fort Collins facility.
These announcements should reassure investors who have questioned whether Apple would eventually replace more Broadcom components with its own designs. Instead, the new agreement suggests Apple still sees value in partnering with one of the semiconductor industry’s leading custom chip designers, even as it continues to expand its in-house silicon capabilities.
Ed Hardy has been writing full-time about tech for 26 years, and using it for much longer than that. His intro to Apple was a Macintosh SE/30 (which he still has), but now he uses a 13-inch iPad Pro as his primary computer.
That’s because he’s a “tablet first” type of guy. Rather than use a Macbook, he connects a keyboard case to the iPad. And instead of a desktop Mac, he connects his tablet to a 27-inch display and full-size keyboard. (So don’t try to tell him that everyone has to use a Mac to be productive.)
Before coming to Cult of Mac, Ed wrote for NotebookReview, TabletPCReview and Brighthand, as well as other sites.
