Apple, Broadcom strike chip-supply deals worth U$15 billion for devices released through mid-2023
- Broadcom is a major Apple supplier, providing radio-frequency chips that let iPhones, iPads and Apple Watches connect to cellular data networks
- The chip maker has disclosed two new multi-year pacts for Apple components, in addition to an existing 2019 agreement
Broadcom disclosed new agreements to provide components for Apple devices released through the middle of 2023.
The San Jose, California-based chip maker said it entered into two multi-year pacts “for the supply of a range of specified high-performance wireless components and modules to Apple for use in its products.” That was in addition to another similar agreement that Broadcom reached with Apple in 2019. The three deals could generate about US$15 billion in future revenue, Broadcom added.
Broadcom shares rose more than 2 per cent in late trading, while rival Skyworks Solutions dropped as much as 7.7 per cent.
Broadcom is a major Apple supplier, providing radio-frequency chips that let iPhones, iPads and Apple Watches connect to cellular data networks. Broadcom has also supplied other components to Apple, including chips for connecting devices to Wi-fi networks.
Broadcom put its radio frequency chip unit up for sale last year. Thursday’s disclosure lets potential acquirers know that they are buying into a substantial business relationship with Cupertino, California-based Apple.
Apple typically reaches long-term deals with major suppliers, but the company is also developing its own components.