Apple seals $30B chip pact with Broadcom

Apple has signed a landmark $30 billion multi-year agreement with Broadcom, its largest US manufacturing commitment to date, aimed at boosting domestic semiconductor production.

New Delhi: Apple has significantly expanded its partnership with Broadcom through a new multi-year agreement worth more than $30 billion, marking the company’s largest manufacturing commitment in the United States and reinforcing its broader strategy to strengthen domestic semiconductor production. 

The agreement, which extends through 2031, is expected to support the production of more than 15 billion chips in the US.

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As part of the deal, Broadcom will invest $1.5 billion to expand its manufacturing facility in Fort Collins, Colorado, although neither company disclosed when the additional production capacity would become operational.

The expanded partnership builds on Broadcom’s long-standing role as a supplier of wireless connectivity components for Apple.

Under the new agreement, Broadcom will manufacture custom silicon in the United States, including wireless connectivity components that power Bluetooth, Wi-Fi and cellular connectivity across multiple generations of Apple devices.

Earlier this week, Broadcom disclosed in a filing with the US Securities and Exchange Commission that it had signed new long-term agreements with Apple to develop and supply custom application-specific integrated circuit (ASIC) silicon products through 2031.

These custom chips will support future generations of Apple products and are expected to play an increasingly important role as ASICs become more widely used for artificial intelligence workloads.

Apple Chief Executive Officer Tim Cook described the agreement as the company’s largest commitment under its American Manufacturing Program (AMP), highlighting its significance in expanding domestic manufacturing capabilities.

The announcement also represents the largest component of Apple’s $600 billion, four-year US investment plan unveiled in 2025, which aims to strengthen the country’s end-to-end silicon supply chain.

In a statement, Apple said it has been working with the US administration and businesses across the country to help build a comprehensive domestic silicon ecosystem, adding that the latest agreement advances those efforts.

Cook also praised President Donald Trump and his administration for supporting American manufacturing initiatives, saying the components to be produced at Broadcom’s Fort Collins facility are essential to delivering the performance and connectivity that Apple customers expect across its devices.