Gary Lerude, MWJ Technical Editor
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Gary Lerude

Gary Lerude is the Technical Editor of Microwave Journal. Previously, he spent his career as a “midwife” aiding the growth of the compound semiconductor industry, from device to application, from defense to commercial. He spent 19 years at Texas Instruments, 11 years at MACOM and six years with TriQuint. Gary holds a bachelor’s in EE, a master’s in systems engineering and an engineers degree (ABD) in EE.

Cellular 4G/LTE Channel / Industry News / RFIC Channel

Broadcom Gets RF Supply Agreements With Apple

January 23, 2020

Broadcom has negotiated two multi-year agreements to supply wireless components to Apple; the two add to a similar agreement announced last June. Broadcom said the three agreements could generate revenue of some $15 billion over their three-and-a-half year lifetime, which begins this month.

The two latest agreements or statements of work, named “2020 SOWs,” call for Broadcom to “supply a range of specified high-performance wireless components and modules to Apple for use in its products” launched during a three-and-a-half-year term beginning this month.

The two-year supply agreement reported on June 9, 2019 (the “2019 SOW”), stated Apple’s intent — not an obligation — to purchase certain RF front-end components and modules from Broadcom, assuming Broadcom could meet Apple’s requirements. That SOW said the products would be used in Apple’s smartphones, tablets and watches.

Both agreements were disclosed in filings submitted by Broadcom to the U.S. Securities and Exchange Commission (SEC).

During Broadcom’s fourth quarter earnings call on December 10, 2019, CEO Hock Tan implied the wireless business could be sold, and The Wall Street Journal reported the business was for sale and could bring a $10 billion price. It’s not clear whether the agreements with Apple make the wireless segment more attractive to keep or will help Broadcom get a higher price from an acquirer.

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