Broadcom and Apple have signed new multi-year agreements extending their chip partnership through 2031. Broadcom supplies Apple with radio-frequency, Wi-Fi, Bluetooth, and custom ASIC components. Apple accounts for roughly 20% of Broadcom's annual revenue, making this extension significant for earnings visibility. The deal signals that Apple's efforts to develop its own in-house connectivity chips are progressing slower than expected, as the 2031 timeline suggests several more years of reliance on Broadcom. The agreement also reflects a broader industry trend of large tech companies locking in long-term custom silicon partnerships to hedge against supply chain disruptions.
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