Apple commits $30 billion to Broadcom through 2031 for AI servers and custom chips

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.

Apple Commits $30 Billion To Broadcom For The Secretive Baltra ASIC And A Host Of Wireless And RF Components, The Biggest Piece Yet Of Its $600 Billion American Manufacturing Bet

Apple now expects to spend over $30 billion on Broadcom till 2031 to realize its lofty ambitions vis-à-vis the so-called Baltra ASIC, while securing preferential access to advanced radio components. The deal is the biggest component of Apple's $600 billion American Manufacturing Program (AMP) so far. Tim Cook: "[This is] our largest ever American Manufacturing Program commitment and an important step in our work to build an end-to-end silicon supply chain in the US" For the benefit of those who might not be aware, Apple is investing around $600 billion in the US over the coming 4 years or so to: This AMP was a critical factor in the Trump administration's calculus to exempt Apple from certain punitive tariffs in 2025. And, while it might not be very flashy, the program is steadily moving ahead towards its set goals. For instance, back in March 2026, we noted that Apple's server manufacturing cadence at its Houston plant was tagging the 10-server-per-hour threshold. Additionally, Apple also plans to manufacture its Mac mini devices at the said Houston plant. In the same month, Apple also roped in Bosch, Cirrus Logic, TDK, and Qnity Electronics to its AMP push. This brings us to the core of today's topic. We reported earlier this week that Apple and Broadcom have entered into a multi-year partnership, one that would see Apple secure advanced radio components, including wireless and Radio Frequency (RF) components for its own baseband chips (C1, C1X, and C2) to enable cellular, Wi-Fi, and Bluetooth connectivity on devices. Bloomberg's Mark Gurman had also speculated at the time that the deal likely had to do something with Apple's long-rumored Baltra ASIC. Well, just a few days later, Apple has officially confirmed the deal, with Tim Cook going on to crow that the tie-up constitutes Apple's "largest ever American Manufacturing Program commitment and an important step in our work to build an end-to-end silicon supply chain in the US." Critically, Apple's accompanying press release has pegged a $30 billion price tag on the deal that now runs till 2031, "and will lead to the production of more than 15 billion U.S.-made chips and support hundreds of American jobs." Apple's allusion to billions of US-made chips is very significant here. After all, there has been rampant speculation since 2024 that Apple was working with Broadcom on its first AI server chip, which bears the internal codename "Baltra." Some reports at the time also suggested that the chip would leverage TSMC's 3nm 'N3E' process, and that the design process would conclude over the coming 12-month period. According to the Information, The chip itself could sport various chiplets, with each of them designed for a specific function. Apple could later combine each of these chiplets into a single unit, with Broadcom possibly included to help with how each of these processors communicates with each other when simultaneously running in Apple Intelligence servers. This siloed approach would allow Apple to keep the overall design of the AI ASIC hidden even from its partners like Broadcom. As for the actual servers, we previously reported that Foxconn has been tasked to produce them, with Apple's assembling partner slated to receive some assistance from Lenovo and its subsidiary when it comes to the overall design. Now that Apple has formally acknowledged its homegrown chip effort, it is only a matter of time until we get more details on the Baltra ASIC. As a final point, do note that Apple's 15 billion chips figure might also include some iPhone and Mac chips that it intends to outsource to Intel. As we've been noting ad nauseum here, Apple is likely to leverage Intel's 18A-P process for the base M7 chips that are expected to ship in 2027. What's more, the Cupertino-based tech giant is now expected to fabricate its 2028-launching A22 chip either on Intel's 18A-P process or the more advanced 14A one, with around 80 percent of Apple's planned orders with Intel reportedly pertaining to this iPhone-geared chip. Follow Wccftech on Google to get more of our news coverage in your feeds.

Broadcom extends Apple chip deal through 2031

Broadcom Inc. (AVGO) just extended its chip supply agreement with Apple through 2031, according to a regulatory filing reported by Bloomberg. This partnership is not a new development. Apple and Broadcom have a long-standing supply relationship and previously made headlines back in 2023 when Apple announced a multi-billion-dollar deal to secure U.S.-manufactured 5G components. This latest agreement simply extends and broadens that established collaboration. The renewal does not introduce a new product line. It locks in technology Broadcom has already been supplying for years, and that detail changes how the deal should be read. Apple has spent years trying to reduce its dependence on outside chip suppliers. It just extended one of its most important supplier relationships by five years instead. The agreement extends existing chip technology, not a new product line Broadcom will develop custom ASIC chips, short for Application Specific Integrated Circuit, for use across multiple generations of Apple products, according to the filing cited by Bloomberg. No financial terms were disclosed. The agreement builds on a multiyear, multibillion dollar deal the two companies struck in 2023, extending that relationship four years further into the future, according to a Seeking Alpha report. At the time of the 2023 extension, Apple CEO Tim Cook framed the relationship as part of a broader commitment to U.S. based technology investment, according to the same report. That framing has not changed. What has changed is how much weight the relationship now carries for Broadcom's business. Broadcom stock rose because of Apple deal Broadcom shares jumped as much as 5% in premarket trading Monday, July 6, following the announcement, according to TradingKey. The stock is up more than 30% over the past 12 months, with its stock price reaching $360.45, up from $274.18. Broadcom trades on the Nasdaq under the ticker AVGO, and it matters to investors because a large share of its revenue depends on a single customer. Apple accounts for roughly 20% of Broadcom's total annual revenue, according to Reuters. A five-year commitment from a customer that size removes uncertainty that had been sitting over the stock. That is why the market moved before the full details were even disclosed. JHVEPhoto / Getty Images Apple still can't replace Broadcom's wireless chip technology Apple has brought modem development in house, with its C1 chip debuting in the iPhone 16E. Yet it still has not been able to move away from Broadcom for wireless and radio frequency components, according to Reuters. Insourcing a modem is not the same as insourcing RF engineering, and that gap is exactly where Broadcom still gets paid. The partnership also extends into Apple's AI buildout. Broadcom technology is built into Apple's in development AI server chips, internally codenamed Baltra, targeted for rollout as early as next year to support Apple Intelligence's cloud infrastructure, Bloomberg noted. That means this deal is no longer purely a wireless chip story. Broadcom's semiconductor solutions segment shows the same shift playing out in its financials. Growth in that segment accelerated from 52% in the first quarter to 79%, while AI specific revenue growth accelerated from 106% to 143%, according to a Seeking Alpha analysis. Apple's extension slots into that same growth curve. Broadcom's other AI partnerships add further context. The company extended its chip partnership with Meta in April 2026, agreeing to supply technology for Meta's Training and Inference Accelerator chips through 2029. Broadcom also worked with OpenAI to showcase Jalapeño, a chip built specifically to run inference for large language models, according to the same report. Rising memory chip prices, up as much as 98% in early 2026 on AI data-center demand, pushed Apple to raise Mac and iPad prices in June, according to a report from TheStreet. The deal reflects a bigger supply-chain shift This deal is one data point in a larger shift where chip supply, not chip demand, has become the binding constraint on tech growth. Companies across industries are locking in multi-year commitments years in advance. Losing chip supplier relationship now carries more risk than paying a premium to keep it. Broadcom itself shows this pattern extending well beyond Apple. In April 2026, Broadcom signed a long-term agreement to develop custom Tensor Processing Units for Google, along with a separate deal to supply networking components for Google's next-generation AI server racks through 2031, according to a Broadcom filing with the SEC. That same filing disclosed an expanded compute agreement involving Google, Broadcom, and Anthropic, under which Anthropic will access several gigawatts of TPU based AI capacity beginning in 2027. The pattern is not limited to AI infrastructure. Micron struck a long-term chip supply deal with General Motors last week, as automakers build more computing power directly into vehicles. Apple's own recent price increases on Macs and iPads, driven by rising memory chip costs, show how that same supply pressure is already reaching consumers rather than staying contained to corporate balance sheets. Broadcom's extension with Apple will be remembered less as a wireless chip renewal and more as an early marker of how AI infrastructure needs reshaped even the most established supplier contracts in tech. Increasingly, the company that locks in supply first is winning, not the one that pays the least. The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc. This story was originally published July 7, 2026 at 8:07 PM.

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.