Apple Expands US Manufacturing With $30 Billion Broadcom Chip Agreement

Key Takeaways

• Apple announced a chip agreement with Broadcom valued at more than $30 billion.

• Broadcom will develop custom silicon and advanced wireless connectivity technologies for Apple through 2031.

• More than 15 billion chips are expected to be manufactured in the United States under the agreement.

• Broadcom will invest $1.5 billion to modernize its manufacturing facility in Fort Collins, Colorado.

• The deal expands Apple's American Manufacturing Program and strengthens its domestic supply chain.

What Happened

Apple announced a multiyear semiconductor partnership with Broadcom valued at more than $30 billion, under which Broadcom will design and manufacture custom silicon components and advanced wireless connectivity technologies for future Apple products.

The agreement follows Broadcom's June 6 filing with the U.S. Securities and Exchange Commission disclosing a long-term custom chip development contract with Apple extending through 2031.

Apple said the collaboration will result in more than 15 billion chips being manufactured in the United States as part of its American Manufacturing Program (AMP). Broadcom also plans to invest $1.5 billion to upgrade its semiconductor manufacturing facilities in Fort Collins, Colorado.

Apple Chief Executive Officer Tim Cook said the expanded partnership builds on the companies' long-standing relationship while supporting domestic manufacturing and technological innovation.

Why It Matters

The agreement represents one of Apple's largest semiconductor supply commitments and underscores its strategy of strengthening U.S.-based manufacturing while securing customized chips for future products.

The investment also aligns with broader efforts to expand domestic semiconductor production as governments continue encouraging the reshoring of critical technology manufacturing and supply chains.

For Broadcom, the long-term contract provides additional visibility into future revenue while reinforcing its position as a key supplier of custom semiconductor solutions for one of the world's largest consumer electronics companies.

Key Details

Under the agreement:

• Broadcom will develop custom silicon components and advanced wireless connectivity technologies for Apple devices.

• The contract extends through 2031, according to Broadcom's SEC filing.

• Apple expects more than 15 billion chips to be manufactured in the United States.

• Broadcom will invest $1.5 billion to modernize its Fort Collins, Colorado manufacturing operations.

• The partnership forms part of Apple's American Manufacturing Program, launched in 2025 to expand domestic production alongside suppliers.

Apple's AMP initiative also includes partnerships with Corning, GlobalFoundries, and Texas Instruments as the company increases investment in U.S.-based manufacturing capabilities.

The announcement comes as semiconductor production remains a strategic priority in U.S. industrial policy, with continued emphasis on expanding domestic chip manufacturing capacity.

Market Impact

The agreement strengthens Broadcom's long-term relationship with one of its largest customers and provides additional revenue visibility through the end of the decade.

Broadcom has benefited from growing demand for custom semiconductor solutions, particularly for artificial intelligence infrastructure and hyperscale computing customers. The Apple agreement further diversifies its long-term business while reinforcing its position in high-performance chip design.

For Apple, the partnership supports supply chain resilience and provides greater control over critical components used across its hardware ecosystem.

Conclusion

Apple's more than $30 billion agreement with Broadcom marks a significant expansion of their long-standing partnership while reinforcing Apple's commitment to U.S.-based semiconductor manufacturing. The multiyear deal provides Broadcom with a substantial long-term customer commitment and supports Apple's strategy of developing custom chips while strengthening domestic production capacity.