Broadcom and Apple agreed to expand their partnership through 2031 to develop and supply custom chips, extending a long-running supplier relationship for parts used in Apple devices.

The deal builds on a 2023 multibillion-dollar agreement for 5G radio frequency components made in the US and expands the relationship to custom semiconductor development and production for multiple generations of Apple products.

Broadcom, the US-based chipmaker, has supplied Apple with custom radio frequency chips for iPhones, as well as Wi-Fi, Bluetooth, and other networking semiconductors.

Apple is estimated to contribute roughly 20% of Broadcom’s annual revenue.

The extension suggests Apple’s in-house modem and wireless chip efforts have not replaced Broadcom as a supplier of networking and radio frequency components.

🔗 Source: Reuters