Apple Ties $30 Bn Broadcom Chip Deal To US Supply Chain Push

Apple is planning to spend more than $30 billion as part of a chip supply agreement reached earlier this week with Broadcom. Apple called it the company's biggest manufacturing commitment in the US so far.

Broadcom had disclosed on Monday, in a filing with the US Securities and Exchange Commission, that it had secured a long-term supply deal with Apple running through 2031 to develop and supply custom ASIC silicon products for Apple devices.

On Wednesday, Apple said the agreement covers a radiofrequency chip called FBAR filters, which help Apple devices communicate wirelessly. Apple has been working with Broadcom to develop this component since at least 2023. Broadcom has long supplied connectivity parts to Apple, and the new deal expands their partnership to cover US-made custom silicon.

Colorado Facility to Expand

As part of the agreement, Broadcom will spend $1.5 billion to expand its factory in Fort Collins, Colorado. The deal is expected to result in the production of at least 15 billion chips in the US.

Apple said the agreement forms the largest part of its $600 billion, four year investment plan for the US, announced in 2025. It is also the biggest commitment so far under the company's American Manufacturing Program, launched to boost domestic production across its supply chain.

Apple CEO Tim Cook said the agreement is part of the company's work with President Donald Trump's administration to source more chips from within the US.

"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 said in a statement.

"We're grateful to the president and his administration for supporting important projects like this," he added.

"Broadcom is proud to continue to work with Apple after decades of success together, and we share a strong commitment to American innovation," said Hock Tan, Broadcom’s president and CEO. "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."