Apple signs $30 billion deal with Broadcom to produce 15 billion wireless chips in the US
The multiyear agreement will see Broadcom design and manufacture over 15 billion custom connectivity chips for Apple products, with a $1.5 billion investment to expand a Colorado facility.
The deal
Apple has signed a multiyear agreement with semiconductor firm Broadcom valued at more than $30 billion. Under the deal, Broadcom will design and produce over 15 billion custom wireless connectivity chips for a wide range of Apple products, all manufactured in the United States. The agreement runs until 2031, according to LaVanguardia, and covers advanced radio frequency components and wireless technologies.
Colorado expansion
As part of the arrangement, $1.5 billion will be directed toward expanding and modernizing Broadcom's manufacturing facility in Fort Collins, Colorado. The plant will produce advanced radio frequency components, including FBAR filters used in smartphones to isolate specific wireless bands. Apple said the investment will create "hundreds of American jobs," a figure TechCrunch noted is relatively small compared to the deal's total value.
- Facility expansion (Fort Collins)
- 1500000000 $
- Remaining chip purchases
- 28500000000 $
Supply chain shift
The deal is the largest single commitment so far under Apple's pledge to invest up to $600 billion in the U.S. economy over four years, a promise made in response to tariff threats from the Trump administration. (LaVanguardia reported a $60 billion figure for that pledge; other outlets cited $600 billion.) The move aims to reduce Apple's reliance on Asian manufacturing and strengthen a domestic semiconductor supply chain.
Geopolitical backdrop
The agreement arrives amid intense global competition for chip production capacity. The U.S. and Europe have been pushing to bring more semiconductor manufacturing back from Asia, especially after pandemic-era shortages disrupted industries. The previous Biden administration used subsidies, while President Donald Trump has employed tariff threats to pressure companies. "Taiwan has taken our chip business," Trump said in February, demanding its return.
The cutting-edge components made in Fort Collins are essential to delivering the exceptional performance and connectivity our customers expect, and we are proud to expand our investments in U.S. suppliers who share our commitment to excellence and innovation.
We share a strong commitment to American innovation.
