Broadcom and Apple announced on July 6, 2026 that they’ve extended their chip supply agreement, locking in a multi-year commitment for custom ASIC silicon products that power everything from iPhones to networking hardware. Broadcom shares jumped roughly 4% in premarket trading on the news.

What the deal actually covers

This isn’t a fresh relationship. The new agreement covers custom radio frequency chips for iPhones, Wi-Fi and Bluetooth connectivity chips, networking semiconductors, and other custom ASIC products.

The extension builds on a multibillion-dollar deal the two companies struck in 2023. That earlier agreement focused specifically on 5G radio frequency components manufactured in the US. By pushing the timeline to 2031, both companies are reinforcing their partnership. For Broadcom, it means guaranteed demand from one of the planet’s most valuable companies. For Apple, it means securing critical components amid ongoing supply chain uncertainty.

What this means for investors

The near-4% premarket pop in Broadcom shares reflects the reduced uncertainty that comes with having Apple locked in as a customer through the end of the decade. Apple is one of Broadcom’s largest customers, meaning customer concentration is both Broadcom’s greatest strength and its most obvious vulnerability.

Broadcom’s custom silicon business now has a clear demand floor through 2031, which makes it easier to plan capital expenditure on manufacturing and R&D. For Apple investors, the deal de-risks Apple’s hardware supply chain during a period of geopolitical tension around semiconductor manufacturing. The 2023 agreement’s focus on US-made components signals Apple is actively diversifying its geographic supply footprint, and this extension reinforces that strategy.