Apple Bets $30 Billion on Broadcom in Major U.S. Chip Manufacturing Push
In Focus
- The Apple-Broadcom deal will involve the design and production of a radiofrequency chip
- Broadcom will spend $1.5 billion on expansion of Fort Collins, Colorado factory
- The two companies will produce over 15 billion chips under the new deal
Apple has announced a new, multi-year agreement with Broadcom that will see it spend over $30 billion on custom chips. The chip deal between Apple and Broadcom will involve designing and producing a radiofrequency chip called FBAR filters to support wireless connectivity in Apple devices. The two companies have been developing the chip since 2023.
How Will the Chip Deal Support Broadcom Expansion?
Apple’s $30 billion chip deal will see Broadcom spend at least $1.5 billion on increasing its production capacity. Broadcom, which is also designing custom chips for Google and OpenAI, plans to expand its Colorado factory.
The expansion is expected to result in production of over 15 billion chips. Apple’s U.S. chip manufacturing partnership is part of President Donald Trump’s plan to promote domestic semiconductor production.
“Apple has been working with the administration and businesses across the U.S. to help create an end-to-end silicon supply chain in America, and today’s announcement advances those efforts,” The company said in a statement.
Apple did not reveal the timeline for bringing the new capacity online. The iPhone maker has long been partnered with Broadcom in the supply of connectivity components. With the latest deal, Apple is deepening this collaboration around U.S.-manufactured custom chips.
“Broadcom is proud to continue to work with Apple after decades of success together, and we share a strong commitment to American innovation. With Apple’s newest commitment, we’re pleased to expand our manufacturing footprint in Fort Collins, where we create groundbreaking technology that connects people around the world,” Broadcom President and CEO Hock Tan said.
What the Deal Shows About the Push for U.S.-Made Chips
The chip deal with Broadcom represents Apple’s latest push to directly invest in U.S. manufacturing. The $30 billion placement is the largest that the company has made from its $600 billion, four-year investment plan for the U.S.
The Broadcom deal is also the largest commitment that Apple has made under its American Manufacturing Program whose aim is to expand local production across the company’s supply chain. Apple CEO Tim Cook considers the investment as critical towards meeting customer performance and connectivity expectations.
“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 U.S.-based suppliers that share our commitment to excellence and innovation,” Cook noted.
Apple’s plan to manufacture chips in the U.S. extends beyond the partnership with Broadcom. Earlier this year, President Donald Trump confirmed that Apple and Intel will collaborate on the design and production of chips in the United States.
What Does the Chip Deal Means for Apple?
The chip deal with Broadcom strengthens Apple’s long-term control over the design and production of components that power its devices. By investing in U.S.-made custom wireless chips, Apple is looking to secure its supply chain while reducing its reliance on overseas production. The new partnership aligns well with the company’s broader strategy of expanding American production and supporting innovation.
