Apple, Broadcom Extend Chip Deal Through 2031

What did Apple and Broadcom just agree to?

Apple and Broadcom have extended their chip supply partnership through 2031, agreeing to develop and supply custom chips together. Reuters via kelo.com reported the deal on July 6, 2026. Broadcom's shares jumped nearly 4% in premarket trading on the announcement.

The agreement eases concerns about Apple's reliance on Broadcom for key wireless components. Broadcom supplies radio frequency chips for cellular connections, Wi-Fi and Bluetooth connectivity chips, and other networking semiconductors used in iPhones.

What components does Broadcom supply to Apple?

Broadcom provides several critical wireless parts to Apple. These include:

• Radio frequency chips used in iPhones for connecting to cellular networks
• Wi-Fi and Bluetooth connectivity chips
• Other networking semiconductors

Despite building its own chips — including the C1 modem — Apple still relies on Broadcom for these wireless and radio-frequency components, according to Reuters via kelo.com.

How important is Apple to Broadcom's business?

Apple accounts for about 20% of Broadcom's annual revenue, according to analysts. That makes Apple one of Broadcom's largest customers. The relationship goes back many years, with the two companies deepening their ties through successive supply agreements.

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What was the 2023 agreement between Apple and Broadcom?

The two companies had already announced a multibillion-dollar agreement in 2023. Apple's newsroom described that deal as covering 5G radio frequency components — including FBAR filters — and wireless connectivity components. Those FBAR filters are designed and built at Broadcom's facility in Fort Collins, Colorado.

Apple CEO Tim Cook said at the time: "We're thrilled to make commitments that harness the ingenuity, creativity, and innovative spirit of American manufacturing."

The 2031 extension builds on that 2023 foundation, locking in the supply relationship for several more years.

Was Apple planning to replace Broadcom's Wi-Fi chips?

There is context worth noting here. In October 2024, analyst Ming-Chi Kuo reported that Apple planned to use its own Wi-Fi 7 chips in the iPhone 17, made by TSMC using a 7-nanometer process. AppleInsider reported that Kuo expected Apple to move "nearly all products to in-house Wi-Fi chips within about three years."

The 2031 extension of the Broadcom deal does not contradict that trajectory entirely. Apple has been gradually replacing third-party chips — it already developed the C1 modem to reduce reliance on Qualcomm — while still maintaining supply agreements for components it hasn't yet replaced in-house.

How does this fit Apple's broader chip strategy?

Here's what we know so far: Apple is running a parallel strategy. It is building its own silicon where it can — processors, modems, and potentially Wi-Fi chips — while locking in long-term supply deals for components it still sources externally.

The extended Broadcom deal reinforces Apple's strategy of securing long-term supply agreements to strengthen its supply chain resilience, Reuters reported. Apple relies on TSMC for its in-house processors, including the M-series chips for Macs and A-series chips for iPhones.

TSMC has been stretched by surging demand from AI chipmakers such as Nvidia. Apple CEO Tim Cook said in April that this had held back iPhone sales. Apple is also in discussions with Intel to manufacture some chips in the U.S., though analysts say volume production is unlikely before late 2027.

The AI memory chip shortage has added further pressure. Apple was forced to raise prices on MacBooks and iPads in June after memory chip costs surged as much as 98% in early 2026, driven by AI datacenter demand.

This supply chain pressure is why long-term agreements like the Broadcom deal matter. For more on how custom silicon is reshaping the industry, see how Amazon custom AI chips are following a similar in-house design path, and how Intel EMIB packaging is competing with TSMC for advanced chip production.

The broader custom chip race is also visible in moves like Micron's HBM expansion and the ongoing competition for Apple foldable iPhone component supply.

Key timeline: Apple and Broadcom's partnership

The confirmed next milestone is the partnership running through 2031, covering the continued development and supply of custom chips between the two companies.