Apple, Broadcom Extend Chip Deal
Apple and Broadcom extend chip supply deal to 2031, covering custom chips for iPhone and other products, ensuring supply-chain resilience and revenue visibility
Key points
- Apple and Broadcom have extended their chip partnership through 2031, covering custom chips for iPhone and other Apple products
- The deal includes development and supply of custom radio frequency components, Wi-Fi, and Bluetooth chips, with Apple accounting for around 20% of Broadcom's annual revenue
- Apple has been bringing chip design in-house, introducing its own C1 and C1X cellular modems, but still relies on Broadcom for some components
- The extension provides Broadcom with earnings visibility and Apple with supply-chain resilience, amid industry-wide chip supply chain concerns
- Broadcom's shares rose nearly 4% following the announcement, reflecting the significance of the deal for the company's revenue
Apple and Broadcom have extended their long-standing chip partnership through 2031. The deal covers the development and supply of a range of custom chips, including radio frequency components, Wi-Fi, and Bluetooth chips, for Apple's iPhone and other products.
The extension builds on an existing supply relationship between the two companies, with Apple accounting for around 20% of Broadcom's annual revenue. While Apple has been bringing chip design in-house, introducing its own C1 and C1X cellular modems, it still relies on Broadcom for some components.
The deal provides Broadcom with earnings visibility and Apple with supply-chain resilience, amid industry-wide concerns over chip supply chains. The extension is seen as a significant development for both companies, with Broadcom's shares rising nearly 4% following the announcement.
Sources
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