Apple Signs $30 Billion Chip Deal With Broadcom

Apple and Broadcom struck a landmark supply agreement worth at least $30 billion, under which the iPhone maker will purchase chips from the semiconductor giant over the next several years, the two companies announced. News of the deal drove Broadcom shares notably higher as investors cheered the scale and duration of the commitment.

The agreement underscores Apple's strategy of locking in long-term supply relationships with key chip partners, a practice it has used to secure critical components while giving suppliers the revenue certainty needed to invest in next-generation manufacturing capacity. For Broadcom, landing a multi-year, multi-billion-dollar contract with one of the world's most valuable companies represents a major win in an increasingly competitive semiconductor landscape.

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The deal also signals that Apple continues to rely on third-party chip suppliers even as it aggressively expands its in-house silicon development — a parallel approach that gives the Cupertino company flexibility across its sprawling product lineup, from iPhones to data center infrastructure. Broadcom has long supplied Apple with wireless connectivity and other networking chips integral to its devices.

The sheer size of the commitment — $30 billion at minimum — places this among the largest publicly disclosed chip supply agreements in the industry's recent history, reflecting both Apple's enormous purchasing power and its desire to secure supply chains that proved vulnerable during the global semiconductor shortage earlier this decade.

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