Apple and Broadcom Renew Chip Partnership Through 2031; Here's How It Could Impact Future iPhones
Broadcom has agreed to extend its custom chip partnership with Apple until 2031. The deal ensures the continued supply of radio frequency and connectivity components for Apple’s devices, helping the tech giant manage supply chain stability amidst rising component costs and high demand for AI hardware.
Broadcom has announced that it has successfully extended its partnership with Apple through to 2031. The agreement, which covers the development and supply of custom chips, serves to stabilise supply chain concerns for the iPhone manufacturer while securing a long-term revenue stream for the semiconductor firm.
As per a report by Reuters, Broadcom shares saw a significant increase of more than 5% following the news. Apple remains one of Broadcom's largest customers, representing approximately 20% of its annual revenue by supplying essential radio frequency, Wi-Fi, and Bluetooth components. Apple Reintroduces Credit and Debit Card Payments for App Store in India; Check Details.
Apple Strengthening Supply Chain Resilience
This long-term agreement reinforces Apple’s broader strategy of securing its supply chain through extended commitments with key technology providers. Despite Apple’s ongoing efforts to develop in-house alternatives, such as its own modem technology, the company continues to rely on Broadcom's specialised wireless and radio-frequency expertise to power its flagship devices.
Industry analysts have welcomed the move, noting that the deal provides Broadcom with a reliable "five-year annuity" from one of the world's most demanding hardware manufacturers. This partnership allows both companies to better navigate the intensifying demand for advanced processors, which has been accelerated by the current boom in artificial intelligence and model inference.
Apple’s reliance on strategic partnerships comes at a time when its primary contract manufacturer, TSMC, is facing immense pressure from surging global demand for AI chips. This high demand recently forced Apple to increase the retail prices of its MacBook and iPad lines in June, following a sharp 98% rise in memory chip costs earlier this year. Apple Agrees To Partner With Intel for Domestic Chip Manufacturing in United States: Donald Trump.
Furthermore, while Apple explores diversification through potential manufacturing agreements with Intel to produce chips in the United States, volume production from such collaborations is not expected to materialise before late 2027. Consequently, the extended cooperation with Broadcom remains a critical pillar in maintaining Apple's hardware production capacity.
(The above story first appeared on LatestLY on Jul 06, 2026 09:19 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).
