Chipmaker Broadcom disclosed in a filing today with the U.S. Securities Exchange Commission (SEC) it had entered into “two separate multi-year statement of work agreements” with Apple.
According to the filing by Broadcom, “both are for the supply of a range of specified high-performance wireless components and modules to Apple for use in its products.”
These new agreements are on top of a previous agreement with Apple inked last June. Broadcom says the remaining part of the deals from last year and this new 2020 deal will “apply to Apple products launched during the three and a half year period beginning in January 2020,” which would mean until 2023.
According to Broadcom estimates, both its 2019 and 2020 agreements with Apple “could, collectively, generate aggregate total future revenue associated with the Covered Products of approximately $15 billion for the Company.”
In after-hours trading, shares of Broadcom increased over 2 per cent.
Back in late December, JP Morgan predicted Apple could potentially acquire Broadcom’s wireless chip business, but now it appears both companies have inked new business deals instead.