Apple and Broadcom have extended their custom chip partnership through 2031, as Apple moves ahead with a broader artificial intelligence push that will rely on new server infrastructure and more advanced in-house systems.
Under the new agreement, Broadcom will continue supplying Apple with custom application-specific integrated circuit chips, designed for specialized tasks rather than general computing. The deal is expected to support multiple future generations of Apple products and comes as the company works to strengthen the cloud side of its Apple Intelligence platform.
Broadcom is also developing a new AI-focused chip for Apple aimed at improving communications for processing artificial intelligence-related tasks. Apple is planning to deploy advanced AI servers as early as 2027. Those servers are intended to deliver stronger performance and improved reliability for the cloud-based components of Apple Intelligence. Apple currently uses standard Mac chips for its Apple Intelligence servers.
Broadcom has long supplied Apple with components tied to cellular connectivity, Wi-Fi and Bluetooth, although Apple has pulled back in recent years from using Broadcom’s combined Wi-Fi and Bluetooth chip in some newer iPhones, iPads and Macs. Broadcom shares rose as much as 6.3% in New York trading on Monday and are up about 38% over the past year, as investor demand for AI-linked chipmakers has surged.
Apple has also been expanding the capabilities of Apple Intelligence, including by announcing a new version of Siri that will use more powerful cloud-based models designed with Google. The extended Broadcom partnership is expected to play a central role in building the infrastructure Apple will need for that next phase.
(YWN World Headquarters – NYC)
