After reports, Apple has announced a new multiyear agreement with Broadcom Inc. valued at more than $30 billion. Under the terms of the deal, Broadcom will design and produce custom silicon components and wireless connectivity technologies within the United States for a wide range of Apple products.
The agreement is projected to result in the production of more than 15 billion U.S.-made chips, supporting hundreds of domestic jobs. The partnership is part of a broader, ongoing effort by Apple, working alongside federal administration officials and domestic businesses, to establish an end-to-end silicon supply chain in the United States.
Broadcom is a participant in Apple’s American Manufacturing Program (AMP), an initiative launched last year aimed at accelerating U.S.-based manufacturing. This new contract represents Apple’s largest AMP commitment to date.
As part of the agreement, Broadcom will execute a $1.5 billion capital expenditure investment to expand and modernize its existing manufacturing facilities in Fort Collins, Colorado. The Fort Collins facility will be utilized to manufacture advanced wireless connectivity technologies and advanced radio frequency components, including Film Bulk Acoustic Resonator (FBAR) filters.
According to Apple, these investments align with its larger corporate objective to invest $600 billion into the United States economy over a four-year period, targeting domestic manufacturing, job creation, and technological development across the country.
Regarding the deal, Tim Cook, Apple’s CEO, said:
Apple and Broadcom have a long history together, and this new phase of our partnership further accelerates our commitment to American manufacturing and innovation. 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. We’re grateful to the president and his administration for supporting important projects like this one.
Hock Tan, Broadcom’s president and CEO, said:
Broadcom is proud to continue to work with Apple after decades of success together, and we share a strong commitment to American innovation. 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.