Apple has announced a new multi-year agreement with Broadcom, expected to exceed $30 billion and to lead to the production of more than 15 billion US-manufactured chips. The agreement covers custom silicon components and wireless connectivity technologies for a wide range of Apple products.
Apple said the deal is its largest commitment so far under its American Manufacturing Program.
The deal includes a $1.5 billion capital investment by Broadcom to expand and modernize its manufacturing facilities in Fort Collins, Colorado.
According to the agreement, Broadcom will produce advanced radio frequency components, including FBAR filters, along with advanced wireless connectivity technologies at the Fort Collins facility. Those parts are used in Apple devices for wireless functions, which makes them part of the company’s broader hardware supply chain rather than a consumer-facing product launch.
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The agreement runs through 2031. Apple is spending more than $30 billion under the arrangement, and Broadcom plans to produce at least 15 billion chips.
“Broadcom is proud to continue to work with Apple after decades of accomplishment together, and we share a strong devotion to American innovation,” said Hock Tan, Broadcom’s president and CEO. “With Apple’s newest commitment, we’re pleased to expand our manufacturing footprint in Fort Collins, where we create cutting-edge technology that connects people around the world.”
What it means
Apple is locking in long-term U.S. manufacturing capacity for a part of its device stack that matters for wireless connectivity, while Broadcom gets a major long-term customer and the justification to expand domestic production. Apple frames the move as part of a larger effort to build a U.S.-based silicon supply chain, not as a shift away from Broadcom.
Rather than moving all production onshore, Apple is choosing particular high-value components to make in the United States and tying them to existing suppliers with established production capability. That is the practical meaning of this deal. It is about capacity, continuity and supply-chain control.
Apple’s chip strategy has long focused on designing core processors in-house while relying on external suppliers for other components. Apple and Broadcom deal sits in the latter category: it is about connectivity hardware and RF components. That matters because the announcement expands Apple’s U.S. manufacturing footprint without changing its core chip-design model.
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Why Broadcom
Apple said it has a long history with Broadcom, and Broadcom’s chief executive said the two companies have worked together for decades.
“Apple and Broadcom have a long history together, and this new phase of our partnership further accelerates our commitment to American manufacturing and innovation,” said Tim Cook, Apple’s CEO. “The cutting-edge components built in Fort Collins are essential to supplying the incredible performance and connectivity our customers expect, and we’re proud to deepen our investments in U.S.-based suppliers that share our commitment to excellence and advancement. We’re grateful to the president and his administration for supporting important projects like this one.”
