Broadcom and Apple have signed two multi-year deals that will see Broadcom supply the iPhone maker with wireless hardware.
According to the semiconductor company, Apple will receive “a range of specified high-performance wireless components and modules” for use in its products.
The news caused Broadcom’s shares to rise two per cent in Thursday’s after-hours trading. Rival company Skyworks Solutions saw its shares decline by as much as 7.7 per cent.
Last year, Broadcom signed another contract to supply Apple with specific radio-frequency (RF) components and modules.
The three contracts signed apply to all Apple devices launched before mid-2023. Broadcom expects to earn $15 billion from the tech giant as a result of the agreements.
According to 9to5Mac, Apple is already a “major” Broadcom customer, accounting for around 25 per cent of the company's net revenue in 2018.
Broadcom is also reportedly looking to sell its RF business unit, and having working deals with Apple could increase the value of the deal. There are rumours that Apple could be a potential buyer.