Apple has expanded its partnership with Broadcom in a multiyear deal valued at over $30 billion through 2031. The agreement will produce over 15 billion U.S.-made custom chips, including advanced radio frequency components and ASIC silicon. As part of the deal, Broadcom will invest $1.5 billion to expand its Fort Collins, Colorado facility. The initiative is the largest piece of Apple's $600 billion U.S. investment plan, launched under pressure from the Trump administration to bolster domestic manufacturing.
Apple-Broadcom chip supply agreement
- ▪The agreement between Apple and Broadcom runs through 2031 and will result in the production of more than 15 billion U.S.-made chips.
- ▪Broadcom will develop and supply custom application-specific integrated circuit (ASIC) silicon products for multiple generations of Apple products.
- ▪The chips produced under the agreement include radio frequency components, such as proprietary FBAR filters used by smartphones to filter wireless bands.
- ▪Apple and Broadcom signed a multiyear chip-supply agreement expected to exceed $30 billion to design and produce custom wireless connectivity chips.
Broadcom Colorado facility expansion
- ▪Broadcom outsources a portion of its chip production to third-party suppliers, including Taiwan Semiconductor Manufacturing Company (TSMC).
- ▪Broadcom will spend $1.5 billion in capital expenditure to expand and modernize its manufacturing facility in Fort Collins, Colorado.
- ▪The Fort Collins facility expansion will produce advanced radio frequency components and wireless connectivity technologies for Apple devices.
U.S. chip manufacturing strategy
- ▪The Apple-Broadcom agreement is designed to support hundreds of American jobs and help establish an end-to-end silicon supply chain in America.
- ▪Apple CEO Tim Cook credited support from President Donald Trump and his administration for enabling the domestic chip manufacturing project.
Apple U.S. economic commitment
- ▪The Broadcom agreement is the largest commitment to date under Apple's American Manufacturing Program to expand domestic production across its supply chain.
- ▪Apple committed to its $600 billion U.S. investment plan in response to pressure and tariff threats from the Trump administration.
- ▪The $30 billion Broadcom deal is part of Apple's broader pledge to invest $600 billion in the U.S. economy over a four-year period.
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