Broadcom and Apple Extend Custom Chip Partnership Through 2031
Apple and Broadcom extended their custom-chip agreement through 2031, expanding ASIC collaboration and folding Broadcom silicon into Apple's in-development Baltra AI server chip for Apple Intelligence.
Key Takeaways
Apple and Broadcom extended their custom-chip partnership through 2031, expanding co-development of ASICs building on prior RF, Wi-Fi and Bluetooth collaboration.
Broadcom silicon is being folded into Baltra, Apple's in-development AI server chip targeted for a 2027 rollout to power the cloud back-end of Apple Intelligence.
Apple accounts for roughly 20% of Broadcom's annual revenue; Broadcom shares rose as much as 5% in premarket trading on July 6, 2026 after the announcement.
The deal follows other Apple silicon moves, including a reported Apple-Intel US chipmaking plan on the 18A process and Broadcom's Jalapeño inference chip partnership with OpenAI.
Despite bringing designs like the C1 and C1X cellular modems in-house, Apple still relies on Broadcom's ASIC expertise and packaging supply chain, and the extension hedges against mid-decade shortages or geopolitical shocks.
Kaan Tınmaz
Broadcom and Apple have extended their long-running chip supply partnership through 2031, expanding the scope of custom silicon Broadcom will design and manufacture for future generations of Apple products.
What's in the New Agreement
The two companies said they will co-develop a range of application-specific integrated circuits (ASICs), building on years of collaboration on Apple's radio frequency, Wi-Fi and Bluetooth stacks. Apple accounts for roughly 20% of Broadcom's annual revenue, making it one of the chipmaker's largest customers. Broadcom shares climbed as much as 5% in premarket trading on July 6, 2026 following the news.
Baltra Ties the Deal to AI Infrastructure
Reports from Bloomberg indicate Broadcom's silicon is already being folded into Baltra, Apple's in-development AI server chip targeted for a 2027 rollout to run the cloud back-end of Apple Intelligence. That makes the extension not just a bill-of-materials commitment but a strategic bet on Apple's data-center silicon roadmap.
Apple has been steadily bringing chip design in-house — the C1 and C1X cellular modems, custom Wi-Fi, in-house AI server silicon — but Broadcom's ASIC expertise and packaging supply chain remain load-bearing pieces of Cupertino's roadmap. Extending through 2031 reduces the risk that a mid-decade shortage or geopolitical shock derails Apple Intelligence at exactly the moment Apple wants to compete with OpenAI and Google on inference.
Reporting based on coverage from Bloomberg, Reuters and MacRumors.
They extended their long-running custom chip supply partnership through 2031, expanding co-development of application-specific integrated circuits (ASICs) for future Apple products, building on years of work on Apple's radio frequency, Wi-Fi and Bluetooth stacks.
What is Baltra and how is Broadcom involved?
Baltra is Apple's in-development AI server chip, targeted for a 2027 rollout to run the cloud back-end of Apple Intelligence. Bloomberg reports Broadcom silicon is already being folded into the chip, making the extension a strategic bet on Apple's data-center silicon roadmap.
How important is Apple to Broadcom's business?
Apple accounts for roughly 20% of Broadcom's annual revenue, making it one of the chipmaker's largest customers. Broadcom shares climbed as much as 5% in premarket trading on July 6, 2026 after the news.
Why does the extension matter if Apple is designing more chips in-house?
Even with in-house designs like the C1 and C1X cellular modems and custom AI server silicon, Broadcom's ASIC expertise and packaging supply chain remain critical to Apple's roadmap. Locking in supply through 2031 reduces the risk that shortages or geopolitical shocks derail Apple Intelligence as Apple competes with OpenAI and Google on inference.
