Apple and Broadcom have extended their partnership to supply custom Application-Specific Integrated Circuit (ASIC) chips, locking in a deal that will support multiple generations of Apple products through 2031. The agreement builds on a multibillion-dollar collaboration that Apple and Broadcom first forged in 2023.

At its core, the deal focuses on custom ASIC chips, the specialized silicon that powers specific functions inside Apple devices rather than serving as general-purpose processors.

Apple accounts for roughly 20% of Broadcom’s annual revenue. Extending through 2031 gives both companies a multi-year runway of predictability, which matters in an industry where fabrication timelines, R&D cycles, and capital expenditures require years of advance planning. Broadcom gets revenue visibility. Apple gets supply certainty.

For traditional equity investors, the deal is straightforward good news for Broadcom. A five-year revenue commitment from a company that already represents a fifth of your top line is about as close to a guaranteed cash flow as semiconductor companies get. This extension removes a key uncertainty from the company’s forward outlook.