Catenaa, Monday, July 06, 2026- Broadcom said that it will provide new custom chips to Apple in an expanded partnership that now runs through 2031.
Under the new agreement, the companies will partner on ASIC silicon, short for application-specific integrated circuit. These types of chips will be found in “multiple generations of Apple products,” according to a Broadcom filing on Monday.
ASIC chips, silicon developed for a specific purpose, are increasingly vital to the development of components for processing artificial intelligence-related tasks.
Apple is working on more advanced AI servers that the company is planning to deploy as early as 2027, Bloomberg has reported.
Broadcom has long made components for Apple related to cellular connectivity, Wi-Fi and Bluetooth, but that relationship has taken a step back in recent years with Apple developing its own N1 chip, a combined Wi-Fi and Bluetooth component found in recent iPhones, iPads and Macs.
Shares of Broadcom rose by 4% to $373 on Monday in New York. The stock has gained about 35% over the past year as the AI boom has fueled demand for more chips.
The company has been working with several other major tech firms, including Alphabet and Meta Platforms.
Broadcom still supplies some components related to cellular networking that work with Apple’s in-house modem, with the companies last announcing a partnership in 2023.
Apple has long been working on its first dedicated AI server chips, codenamed Baltra, which are a super-sized version of the M5 Ultra chip that the company aims to debut this year in the Mac Studio.
Apple currently uses standard Mac chips for its Apple Intelligence servers.
The upcoming AI servers are designed to provide more powerful capabilities and improved reliability for the cloud-based components of Apple Intelligence.
Apple has been rapidly expanding its functionality, including by announcing a new version of Siri that uses more powerful cloud models designed with Google.
