Tag: US manufacturing

  • Apple and Broadcom Forge $30B+ Chip Supply Deal for US Manufacturing Through 2031

    Apple and Broadcom Forge $30B+ Chip Supply Deal for US Manufacturing Through 2031

    Apple has signed a multiyear agreement valued at over $30 billion with Broadcom to design and produce custom silicon parts and wireless connectivity chips in the United States through 2031. The deal includes a $1.5 billion expansion of Broadcom’s Fort Collins, Colorado facility, reinforcing Apple’s broader commitment to domestic manufacturing.

    Strategic Partnership Expansion

    The agreement covers advanced radio-frequency components, including FBAR filters, which are critical for wireless communication features in Apple products. This expands a long-standing supplier relationship and secures a larger US-based production path for key components used across Apple’s device lineup.

    Apple expects the collaboration to result in the production of more than 15 billion chips in the United States, supporting hundreds of American jobs tied to chip production and related manufacturing work. This deal is the largest commitment under Apple’s American Manufacturing Program, which aims to increase domestic production and deepen ties with US suppliers.

    Infrastructure Investment

    Broadcom will invest $1.5 billion to expand and modernize its Fort Collins facility, which will produce radio-frequency components and advanced wireless connectivity technologies for Apple devices. Apple CEO Tim Cook stated, “The cutting-edge components built in Fort Collins are essential to delivering the incredible performance and connectivity our customers expect, and we’re proud to deepen our investments in US-based suppliers that share our commitment to excellence and innovation.”

    Hock Tan, President and CEO of Broadcom, added, “Broadcom is proud to continue to work with Apple after decades of success together, and we share a strong commitment to American innovation.”

    Broader US Supply Chain Strategy

    The agreement aligns with Apple’s plan to invest $600 billion in the US economy over four years, covering manufacturing, job creation, supplier growth, and technology development. It also comes amid federal efforts to boost domestic chip production, with the Trump administration urging tech companies to reduce reliance on foreign supply chains.

    Following the announcement, Broadcom shares rose over 4%, while Apple shares dipped slightly, reflecting investor reactions to the expanded supplier role and spending commitments.