Broadcom inks two multi-year deals to supply Apple with wireless components


Longtime Apple partner Broadcom on Thursday said it has negotiated two multi-year deals to supply wireless components to Apple, further extending the chipmaker’s reach into the tech giant’s supply chain.


A Broadcom Wi-Fi/Bluetooth module in the iPhone XS Max. | Image Credit: Tech Insights

The agreements, referred to as “2020 SOWs,” are on top of existing contracts with Apple and could be worth a combined $15 billion, reports Reuters.

What components are covered by the twin agreements, and for how long, are unknown.

Broadcom currently supplies Apple with radio-frequency front end components used in the production of major products like iPhone. Last June, for example, the company inked a deal to extend its RF parts contract with Apple for two years.

The chipmaker has been a key Apple supplier for well over a decade, furnishing components that helped flagship products like iPhone 3G connect to cellular and Wi-Fi networks. In addition to RF parts, the company supplies touchscreen controllers and wireless charging modules.

News of Broadcom’s expanded relationship with Apple arrives a month after reports claimed the company was looking to sell off is RF unit. A cog in Broadcom’s wireless chip arm, the RF unit is a carryover from the company’s early days, when it concentrated on semiconductor development and sales under the Avago Technologies banner.

Previously a division of Hewlett-Packard, Avago — then Agilent Technologies — split off and began to assemble a portfolio of tech acquisitions covering a variety of disciplines, including Broadcom in 2015 for $37 billion. The resulting company attempted to enlarge its market footprint with a hostile takeover of Qualcomm, a move that was ultimately blocked by the Trump administration on national security concerns.

Source link