Apple and Broadcom Sign $30 Billion U.S. Chip Deal

Apple Inc. and Broadcom Inc. have entered a multi-year agreement valued at over $30 billion to develop and produce custom silicon and wireless connectivity components through 2031. The deal focuses on radio-frequency chips and film bulk acoustic resonator filters essential for iPhone connectivity, including 5G, Wi-Fi, and Bluetooth. As part of the pact, Broadcom will invest $1.5 billion to modernize its manufacturing facility in Fort Collins, Colorado, to produce more than 15 billion American-made chips.

This partnership is the largest single component of Apple's American Manufacturing Program and a broader $600 billion four-year U.S. investment pledge. The initiative aims to create an end-to-end domestic silicon supply chain, reducing reliance on Chinese-made chips amid tariff uncertainties and aligning with the manufacturing priorities of the Trump administration.

The agreement also supports Apple's artificial intelligence infrastructure, with Broadcom developing AI-focused chips for Apple's first dedicated AI servers, targeted for deployment as early as 2027. This collaboration extends a relationship established in 2023 and secures supply-chain certainty for Apple as its primary contract manufacturer, TSMC, faces capacity constraints due to broader AI demand.