U.S. chipmaker Broadcom said in a SEC filing on Thursday that it entered into two new multi-year agreements with Apple “for the supply of a range of specified high-performance wireless components and modules to Apple for use in its products.”
Combined with a deal disclosed earlier, Broadcom's looking at $15 billion in future revenue from Apple. Broadcom is expected to supply the iPhone maker through the middle of 2023.
It didn’t say exactly what type of wireless components it will provide to Apple, but a previous teardown analysis of the iPhone 11 revealed Broadcom-made Bluetooth and Wi-Fi chips. The analysis also found a radio-frequency (RF) front-end chip with branding from Avago, the semiconductor company that acquired Broadcom in 2015. The RF chip that helps the phone connect to wireless networks.
The new agreements are in addition to a different deal Broadcom made with Apple last year. In total, the three deals could make Broadcom about $15 billion in future revenue, according to Broadcom .
These deals seemed to have arrived after Broadcom put its RF division up for sale last year. It’s not clear if Broadcom will continue to try to sell the division or if it will use these new significant deals with Apple to emphasize how valuable the division is for the potential buyer.
Broadcom attempted to acquire Qualcomm for $117 billion, but the U.S. government rejected the bid on the grounds that Broadcom was no longer based in the U.S. after the post-Avago purchase company moved its headquarters to Singapore.
After the failed acquisition of Qualcomm, Broadcom eventually moved to San Jose, California, therefore affording it the potential to look into other U.S.-based acquisitions. In the past few years, Broadcom has started ditching its hardware divisions one by one and acquiring more profitable enterprise software companies.