Apple and Broadcom Strike Over $30 Billion Deal for US-Made Chips
Apple has announced a multiyear partnership with semiconductor firm Broadcom Inc., valued at over $30 billion, to produce billions of chips in the United States. The deal, which will run through 2031, covers custom silicon components and wireless connectivity solutions, including FBAR filters critical for wireless communications in Apple devices.
The collaboration is part of Apple's American Manufacturing Program (AMP), its largest commitment to date. Broadcom will invest $1.5 billion to expand its factory in Fort Collins, Colorado, where the chips will be made. Apple CEO Tim Cook stated, 'The cutting-edge components built in Fort Collins are essential to delivering the incredible performance and connectivity our customers expect.'
Broadcom President and CEO Hock Tan said, 'Broadcom is proud to continue to work with Apple after decades of success together, and we share a strong commitment to American innovation.' The deal is expected to create over 15 billion chips entirely made in the US, supporting domestic jobs and reducing reliance on foreign supply chains.
The agreement aligns with broader federal efforts to boost domestic semiconductor manufacturing. Apple has committed to investing $600 billion in the US economy over four years, of which this deal forms a part. Following the announcement, Broadcom shares rose more than 4%, while Apple shares edged lower.
