Apple Signs $30 Billion Chip Manufacturing Deal with Broadcom

Apple has announced a new multiyear agreement with Broadcom for the design and manufacture of custom silicon components and advanced wireless technologies in the United States, the company’s largest commitment as part of the company’s American Manufacturing Program (AMP).

The deal is expected to generate over 15 billion US-made chips, supporting hundreds of manufacturing jobs and strengthening the country’s semiconductor supply chain.

Broadcom will spend $1.5 billion as part of the deal to expand and upgrade its manufacturing facility in Fort Collins, Colo. The site will build advanced radio frequency, or RF, components including FBAR filters and wireless connectivity technologies used across Apple’s product line-up.

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US Manufacturing:

The announcement is part of Apple’s broader commitment to invest $600 billion in the U.S. economy over the next four years in manufacturing, research and development, infrastructure and workforce development.

In a statement, Apple CEO Tim Cook said “Apple and Broadcom have a long history together and this new phase of our partnership further accelerates our commitment to American manufacturing and innovation.

Cook credited support from the US administration for domestic manufacturing initiatives, saying the components made in Fort Collins are key to delivering the performance and connectivity that customers expect from Apple products.

"Broadcom is proud to extend our long-standing partnership with Apple and to expand our manufacturing footprint in Colorado," said Broadcom President and CEO Hock Tan.

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Semiconductor Expansion:

Broadcom joined Apple’s American Manufacturing Program last year, which seeks to accelerate U.S. manufacturing capabilities and reduce reliance on overseas manufacturing. The latest deal is a big expansion of that partnership and is expected to bolster Apple’s semiconductor ecosystem in the US.

The partnership’s chips will include state-of-the-art radio frequency components that allow Apple devices to communicate wirelessly with each other. Apple is working to bolster its supply chain and support wider efforts to grow semiconductor manufacturing in the United States by increasing domestic production of these critical technologies.

The announcement comes as major technology companies continue to invest in domestic chip production in the face of geopolitical tensions, supply chain disruptions and government incentives to ramp up semiconductor manufacturing in the US. Apple is using its manufacturing strategy to boost local production, but it still works with key suppliers around the world.