Broadcom announced Monday it has agreed to expand its partnership with Apple through 2031, focusing on the development and supply of custom chips. The deal builds on a multibillion-dollar agreement first disclosed by the companies in 2023.
The pact underscores Apple's strategy of deepening ties with key silicon suppliers to secure its hardware pipeline. Broadcom's custom components have long been integral to Apple's iPhones, iPads, and other devices, giving the chipmaker a steady revenue stream from the tech giant.
Terms of the extended deal were not disclosed, though the 2023 agreement was described as multibillion-dollar. Broadcom's stock saw modest gains following the announcement, reflecting investor confidence in the long-term partnership.
For Broadcom, the extension locks in a major customer relationship through the end of the decade. Apple gains supply chain certainty as it increasingly designs its own processors in-house, relying on Broadcom for complementary chips.
The Register noted this is likely an extension of existing iThing innards arrangements rather than a new AI accelerator deal, tempering expectations of a radical shift in the partnership's scope.