Broadcom’s wireless connectivity chips have been inside iPhones since the 3GS era, with the supplier relationship dating back to 2009. The two companies already inked a multiyear, multibillion-dollar agreement back in May 2023. That deal focused specifically on 5G radio frequency components, with a notable emphasis on US-manufactured parts. It included manufacturing commitments at facilities in locations like Fort Collins, Colorado.

Broadcom isn’t just riding the iPhone wave. The company has been diversifying aggressively into AI custom chips, with Google as a key partner for custom accelerators. Reports from December 2024 also indicate that Broadcom is collaborating with Apple on an AI server chip, codenamed Baltra, targeting production in 2026.

Apple’s in-house ambitions loom large

Apple has reportedly been aiming to reduce its reliance on third-party chip suppliers, with expectations that more in-house development would ramp up significantly around 2025.

What this means for investors

Broadcom’s dependence on Apple as a major revenue source means any future shift in Apple’s in-house strategy could create outsized volatility. Investors should watch for signals around Apple’s modem and wireless chip development programs, which represent the most likely areas where in-house replacements could eventually materialize.

If the Baltra AI server chip collaboration pans out and hits its 2026 production target, Broadcom’s relationship with Apple would span consumer devices, wireless infrastructure, and enterprise AI hardware.