Apple Extends Multibillion Deal With Broadcom
Apple will extend its chip-supply agreement with Broadcom!
The deal is considered to be a multibillion-dollar in value, as the iPhone maker has been trying to bring more such work in-house.
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Apple will extend its chip-supply agreement with Broadcom.
Considered a multibillion-dollar deal, as the iPhone maker has been trying to bring more such work in-house.#apple #Broadcom #chips pic.twitter.com/f4SYjZWYZA— The_Journalbiz (@the_journalbiz) May 23, 2023
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Apple has long sought to replace chips made by other companies with versions it designs. The company has replaced Intel as a supplier of chips at the heart of its laptops and desktop computers, but it has struggled with attempts to develop its own cellular modem chips, which are currently supplied by Qualcomm.
As part of the deal that Apple and Broadcom disclosed Tuesday, the chip maker will supply Apple with 5G radio-frequency components and wireless-connectivity components. The companies didn’t disclose the exact value of the deal.
The 5G radio-frequency components will be built in several manufacturing hubs around the U.S., including in Fort Collins, Colo.
“We’ll continue to deepen our investments in the U.S. economy because we have an unshakable belief in America’s future,” Apple Chief Executive Tim Cook said.
UBS analysts said they estimate the new deal will run through 2026 and likely is valued at more than $15 billion. The analysts added that the deal seems to quash speculation Apple would phase out Broadcom from its devices beginning in 2025, even if the iPhone maker continues with its effort to bring more key technology in-house.
*Shares in Broadcom rose around 2.5% Tuesday. The stock has been trading near record highs.
