Broadcom, Apple Extend Chip Supply Deal Through 2031
The new multi-year agreement could lock in more than $30 billion in U.S.-made chips and expand Broadcom’s Fort Collins facility, Apple said.
- On Monday, Broadcom agreed to expand its partnership with Apple through 2031 to develop and supply custom chips, sending Broadcom shares up nearly 4% in premarket trading.
- Apple accounts for about 20% of Broadcom's annual revenue, relying on the firm for key wireless connectivity and radio frequency components that reinforce its multi-year supply strategy.
- Advanced Micro Devices stock rose 10% and Intel shares gained 5% alongside the announcement, though analysts warn the sector remains volatile following last week's slide.
- Broadcom CEO Hock Tan projects AI semiconductor revenue will hit $16 billion in the third quarter, representing growth of over 200 percent year-over-year.
- Cantor Fitzgerald lifted its Broadcom target to $700 while Wells Fargo raised its AMD price target to $615, though analysts caution valuations appear stretched after the sector's substantial gains.
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Learn about Apple's $30 billion deal to expand chip production in the U.S. and what impact it will have on its supply chain.
(San Francisco = Yonhap News) Correspondent Kwon Young-jeon = Amid reports that Apple and Broadcom have extended their ASIC partnership, Apple [will use] this to ...
Broadcom shares jump over 2% after Apple announces $30 billion chip deal
Broadcom shares gained after Apple announced a multi-year chip supply agreement exceeding $30 billion. The deal expands US manufacturing, strengthens Broadcom’s custom silicon business through 2031 and supports Apple’s strategy to build a domestic semiconductor supply chain.
Apple to spend $30 billion in Broadcom chips deal that will see Colorado factory expand
SAN FRANCISCO, July 8 : Apple plans to spend more than $30 billion as part of a chip-supply agreement reached earlier this week with Broadcom that will also see the chipmaker expand a factory in Colorado, the companies said on Wednesday.Broadcom disclosed on Monday it had secured a long-term supply deal throu
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