Broadcom and Apple expand partnership to 2031 with custom chips
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Apple and Broadcom have been partners for years, with the chip company long supplying Apple with components for networking.
PHOTO: REUTERS
- Broadcom and Apple have extended their partnership until 2031, with Broadcom providing custom ASIC chips for multiple generations of Apple products.
- Broadcom has supplied Apple with connectivity components for years but now focuses on ASIC silicon critical for AI infrastructure.
- Apple plans to use Broadcom technology in its own AI server chips, called Baltra, for cloud-based AI features by 2027.
AI generated
CALIFORNIA – Broadcom said on July 6 that it will provide custom chips for Apple in an expanded deal that runs through 2031.
The companies have signed a new multi-year agreement, through which Broadcom will develop custom ASIC chips, short for application-specific integrated circuit.
That means they were designed for a particular purpose. The chips will be used in “multiple generations of Apple products”, Broadcom said in a filing.
Broadcom has long made connectivity components for Apple’s iPhone. Shares of Broadcom rose about 5 per cent before markets opened in New York.
The stock has gained more than 30 per cent over the past year as the artificial intelligence boom has fuelled demand for more semiconductors.
The company has been working with several other major tech firms, including Alphabet and Meta Platforms, on AI-specific chips.
Apple and Broadcom have been partners for years, with the chip company long supplying Apple with components for networking, including for Bluetooth, 5G and Wi-Fi.
But Apple recently reduced its reliance on Broadcom by rolling out its own combined Wi-Fi and Bluetooth chips in iPhones, iPads and Macs.
Broadcom still supplies some components related to cellular networking that work with Apple’s in-house modem. The latest stage of its relationship is related to ASIC silicon, which is critical for the development of artificial intelligence infrastructure.
Apple has been working on its own dedicated AI server chips, codenamed Baltra, for deployment by 2027 that include the Broadcom technology.
These servers are designed to power cloud-based Apple Intelligence features, such as those for generating advanced text and images and summarising information. BLOOMBERG
