Broadcom and Apple have agreed to extend their chip supply partnership through 2031, covering the development and delivery of custom application-specific integrated circuits across multiple generations of Apple devices. The deal sent Broadcom shares up nearly 4% in premarket trading on July 6, which is the kind of investor reaction you get when a fifth of your revenue base just committed to sticking around for another half-decade.
The agreement covers radio frequency components, Wi-Fi and Bluetooth connectivity solutions, and networking chips, all custom-designed silicon tailored specifically for Apple’s hardware roadmap. It builds on a previous multibillion-dollar contract that was expanded in 2023, making this less of a new relationship and more of a renewal with extra years tacked on.
Why a chip deal matters beyond consumer electronics
Apple accounts for approximately 20% of Broadcom’s annual revenue. That’s a staggering concentration for a company of Broadcom’s size, and it means this single customer relationship has outsized influence on earnings guidance, capital allocation, and R&D priorities. Locking it in through 2031 gives Broadcom something rare in the semiconductor world: predictability.
