Apple extends Broadcom partnership through 2031 to secure custom ASIC chips for AI servers

Apple to Continue Acquiring Broadcom Chips Till 2031, Chipmaker Confirms

Supply to Apple might account for a large part of Broadcom's revenue Apple introduced its proprietary C1 modem with the iPhone 16e in 2025, a first for the Cupertino-based tech giant. Later the same year, the smartphone maker launched the iPhone Air, which is equipped with Apple's C1X model. However, the company continues to use Qualcomm's 5G modems for its higher-end iPhone models. While it has been able to develop proprietary network chips, Apple still relies on Broadcom for the radio frequency (RF) chips and networking modules that, among other things, allow Apple devices to communicate with each other wirelessly. Now, the US-based chipmaker has confirmed that it has renewed its "long-standing" partnership with Apple, extending the agreements between the two till 2031. Apple Agrees to Use Broadcom Chips for Future Devices In an 8K regulatory filing submitted to the US Securities and Exchange Commission (SEC), Broadcom announced that Apple has agreed to "expand their long-standing technology collaboration" till 2031, while renewing the multi-year agreements between the two US-based tech giants, including the development and supply of custom application-specific integrated circuit (ASIC) silicon chips. The chipmaker says that Apple will use these chips in future generations of devices. Broadcom has been supplying RF chips and networking modules to Apple for its devices for years now. These chips enable multiple wireless connectivity features for Apple devices. Moreover, Apple's custom C1 and C1X modems also comprise a few components, which are supplied by Broadcom. TheElec reports that Broadcom's supply to Apple accounts for nearly 20 percent of its total annual revenue. The partnership extension is said to help Apple secure networking chips for the next five years, while giving Broadcom long-term demand assurances for its chips, amid uncertainties surrounding the global supply chains. According to a Bloomberg report, the custom AISC chips, co-developed by Broadcom and Apple, will power the "more advanced AI servers" that the Cupertino-based tech giant plans to deploy by 2027. The report highlights that the AISC chips have gained prominence in recent years as they are used in various components required for processing AI-powered tasks. The relationship between Apple and Broadcom had reportedly taken a "step back" in recent years, as Apple has been working on its proprietary N1 chips, which combine Wi-Fi and Bluetooth components on iPhone, iPad, and Mac models.

Broadcom extends custom chip deal with Apple through 2031

Broadcom has expanded its partnership with Apple through a new multi-year agreement that will run until 2031, according to a report by Mark Gurman for Bloomberg. Under the agreement, Broadcom will develop custom application-specific integrated circuit (ASIC) chips tailored for specific applications. The chips will be used in multiple generations of Apple products, the company said in a regulatory filing. Financial terms were not disclosed. Apple and Broadcom have been partners for years, with the chipmaker supplying networking and connectivity components for Apple devices, including Bluetooth, Wi-Fi, and 5G chips. While Apple has reduced its reliance on the company by introducing its own combined Wi-Fi and Bluetooth chips in iPhones, iPads, and Macs, it continues to supply certain cellular networking components that work with Apple's in-house modem. The agreement centers on custom ASIC silicon, which is used in the development of artificial intelligence infrastructure. According to the report, Apple is developing dedicated AI server chips, codenamed Baltra, for deployment next year. They incorporate Broadcom technology and are expected to power cloud-based Apple Intelligence features, including advanced text and image generation and information summarization.