Apple and Broadcom Announce $30 Billion Chip Agreement

Apple just made its largest single commitment under its American Manufacturing Program. The company officially announced a multi-year agreement with Broadcom worth more than $30 billion, covering the design and manufacture of custom silicon components and advanced wireless connectivity technologies for Apple products through 2031.

The numbers are substantial. Apple will purchase more than 15 billion US-made chips from Broadcom under the agreement primarily FBAR radio-frequency filters alongside Wi-Fi, Bluetooth, and other networking components that power wireless connectivity across iPhone, iPad, Mac, Apple Watch, and Vision products. These aren’t headline-grabbing processor chips, but they’re inside virtually every Apple device shipped globally.

The manufacturing side of the deal carries real weight too. Broadcom will invest $1.5 billion to expand and modernize its semiconductor facility in Fort Collins, Colorado creating hundreds of American jobs and significantly increasing domestic chip production capacity specifically for Apple’s supply needs.

Apple CEO Tim Cook framed it as a deepening of Apple’s commitment to American manufacturing, while Broadcom CEO Hock Tan highlighted decades of partnership and the expanded US manufacturing footprint the agreement enables.

This deal sits within Apple’s broader $600 billion US investment plan announced earlier this year and at $30 billion, it’s the largest single commitment made under that program so far. Broadcom shares jumped following the announcement while Apple stock moved modestly.

For Apple, this reduces dependence on overseas wireless chip production and locks in supply through 2031 exactly the kind of long-term supply chain resilience the memory shortage crisis made everyone realize was necessary.