Broadcom and Apple extend their custom chip partnership until 2031
Related
Broadcom will develop custom ASIC chips for Apple and has agreed to expand its technology collaboration to 2031.
Broadcom filed a document with the U.S. Securities and Exchange Commission on July 6, announcing a multi-year agreement with Apple to extend their long-standing technology partnership into 2031. Under the agreement, Broadcom will develop and supply a range of custom ASIC chips for multiple generations of Apple products. (Jiemian)
Apple invests over $30 billion to deepen its partnership with Broadcom and expand its domestic chip manufacturing operations in the United States.
According to ChainCatcher, citing CNBC, Apple announced on Wednesday a multi-year partnership with chipmaker Broadcom, expected to exceed $30 billion. This is Apple's largest commitment to U.S.-made manufacturing to date. Under the agreement, Broadcom will continue to develop and supply customized ASIC chips (increasingly used in AI workloads) and wireless components for cellular networks, Wi-Fi, and Bluetooth connectivity for multiple generations of Apple products until 2031. The report indicates that the partnership is expected to facilitate the production of more than 15 billion U.S.-made chips and includes a $1.5 billion expansion of Broadcom's Fort Collins, Colorado factory. Outgoing Apple CEO Tim Cook stated that this move is the largest single project in Apple's $600 billion U.S. investment plan announced in 2025, aimed at responding to the Trump administration's call to promote domestic manufacturing and helping to establish an end-to-end silicon supply chain in the United States.
Broadcom shares rose more than 4% in pre-market trading after the company extended its technology collaboration with Apple to 2031 through a new multi-year agreement.
According to BlockBeats, on July 6th, citing SEC filings, Broadcom (AVGO.O) and Apple (AAPL.O) have extended their technology collaboration to 2031 through a new multi-year agreement. Broadcom will develop and supply a range of custom ASIC silicon products for use in the manufacture of multiple generations of Apple products. Possibly influenced by this positive news, Broadcom's US-listed shares rose in pre-market trading, currently up over 4%.
Apple to increase spending on its partnership with Broadcom; deal expected to exceed $30 billion.
According to Mars Finance, Apple will increase its spending on its partnership with Broadcom, an agreement expected to exceed $30 billion and produce more than 15 billion U.S.-made chips. (Cailian Press)
ING: Nvidia's profit margins are threatened by customers developing their own chips.
According to Mars Finance, on July 7th, Jan Frederik Slijkerman of ING wrote in a report that Nvidia's ability to maintain profit margins is uncertain as tech giants develop their own chips. He pointed out that major customers such as Microsoft, Alphabet, and Amazon are developing their own custom chips to help control AI infrastructure costs (capital expenditure efficiency). He stated that, therefore, Nvidia's pricing power may face more intense competition than in recent years, making it more difficult for it to maintain its currently extremely high profit margins in the long term, despite the company's expansion into new business lines.
Edge AI concept stocks fluctuated and strengthened, with Rockchip hitting the daily limit.
Mars Finance reports that AI-related stocks on the edge of the market rallied in early trading, with Rockchip Technology hitting the daily limit, followed by Transsion Holdings, Allwinner Technology, Pinming Technology, Espressif Systems, VeriSilicon Holdings, and Hengxuan Technology. In related news, Broadcom announced an expanded strategic partnership with Apple, extending its custom ASIC chip contract to 2031. Broadcom will develop and supply custom AI acceleration chips for multiple generations of iPhones, Macs, and Vision Pro products, strengthening its AI computing power deployment on the edge. (Cailian Press)