Apple Extends Broadcom Partnership Till 2031 as AI Chip Race Reshapes Supply Chains

Apple has extended its long-standing partnership with Broadcom through 2031, ensuring the chipmaker will continue developing and supplying custom chips for future Apple devices. The move comes as AI-driven demand for semiconductors is reshaping global supply chains and forcing technology companies to secure long-term access to critical components.

The announcement also eases concerns over Apple's dependence on Broadcom, even as the iPhone maker continues designing more of its own silicon in-house.

Broadcom Will Continue Supplying Key iPhone Chips

Under the expanded agreement, Broadcom will continue supplying a range of custom chips used across Apple's product portfolio.

These include radio frequency (RF) chips that enable cellular connectivity in iPhones, along with Wi-Fi, Bluetooth, and other networking semiconductors. While Apple has introduced its own processors, including the C1 modem, it still relies on Broadcom for several critical wireless components.

Why This Deal Matters

The extension reflects Apple's broader strategy of locking in long-term partnerships with key suppliers at a time when competition for advanced chips has intensified. The rapid growth of artificial intelligence has dramatically increased demand for custom semiconductors used in both consumer devices and data centres. By securing Broadcom's supply through 2031, Apple is looking to strengthen its supply chain and reduce the risk of component shortages.

Apple Is Still Building More Chips In-House

Despite its continued reliance on Broadcom, Apple has steadily expanded its in-house chip development over the past few years. The company now designs its A-series chips for iPhones, M-series processors for Macs and iPads, and recently introduced the C1 cellular modem. However, wireless connectivity remains an area where Apple still depends on specialist suppliers such as Broadcom.

Comes Weeks After Apple Raised Prices

The partnership also arrives at a time when Apple's supply chain has been under pressure.

Last month, the company increased the prices of several MacBook and iPad models after memory and storage chip prices surged amid rising AI infrastructure demand. Apple has also been exploring additional manufacturing partnerships, including discussions around producing some chips in the United States, as it looks to diversify its semiconductor supply chain.

For Broadcom, the extension secures one of its biggest customers for another five years. For Apple, it highlights that even with its growing silicon ambitions, the company still depends on strategic partnerships to build the wireless technologies that power millions of iPhones and other devices worldwide.