Apple announced on Wednesday a landmark multiyear agreement with Broadcom valued at over $30 billion to design and produce custom silicon components and cutting-edge wireless connectivity technologies, marking the company's largest commitment under its American Manufacturing Program (AMP).
$30 Billion Deal to Produce 15 Billion Chips
The agreement will lead to the production of more than 15 billion US-made chips and support hundreds of American jobs across manufacturing, engineering, and related industries. As part of the deal, Broadcom will invest $1.5 billion to expand and modernise its manufacturing facility in Fort Collins, Colorado, where it will produce advanced radio frequency components including FBAR filters and advanced wireless connectivity technologies.
The deal, which runs through 2031, locks in Broadcom as a critical custom silicon partner for Apple's product ecosystem. Broadcom's chips cover custom radio frequency components, Wi-Fi and Bluetooth connectivity, and other networking semiconductors found throughout Apple's iPhone, iPad, Mac, and Apple Watch lineup.
"Apple and Broadcom have a long history together, and this new phase of our partnership further accelerates our commitment to American manufacturing and innovation," said Tim Cook, Apple's CEO. "The cutting-edge components built in Fort Collins are essential to delivering the incredible performance and connectivity our customers expect."
Apple's Broader $600 Billion US Investment
The Broadcom agreement is part of Apple's broader commitment to invest $600 billion in the US economy over four years, spanning advanced manufacturing, research and development, engineering, and semiconductor production. Broadcom is part of Apple's American Manufacturing Program, launched last year to accelerate domestic chip production.
"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."
Apple has been working with the Trump administration and businesses across the US to help create an end-to-end silicon supply chain in America, and today's announcement advances those efforts significantly. The Fort Collins expansion adds to Apple's existing support of more than 1,100 jobs at Broadcom's Colorado FBAR filter manufacturing facility.
Impact on the Semiconductor Industry
The deal has far-reaching implications for the global semiconductor landscape. Broadcom, which has been a major beneficiary of the AI trade with its stock rising more than 35% over the past year on the back of custom chip work for companies like Google, has now secured its position as Apple's long-term wireless chip partner through 2031.
Estimates suggest that Apple accounts for around 20% of Broadcom's annual revenue, making it one of the chipmaker's most valuable customers. The extended partnership eases concerns that Apple might eventually replace Broadcom with entirely in-house solutions for wireless connectivity, at least for the near term.
Apple shares trade near their 52-week high of $317.40, with a market capitalisation of $4.56 trillion. The company's product gross margin for the March 2026 quarter was reported at 38.7%, aided by some tariff relief. Broadcom shares also rose nearly 4% in premarket trading following the announcement.
The semiconductor industry has been undergoing massive transformation, with companies like AMD launching competitive AI hardware and Google pushing open-source AI models. Meanwhile, the broader push for domestic chip manufacturing in the US continues to reshape supply chains away from traditional Asian fabrication hubs.
What the Deal Means for Consumers
For consumers, the deal ensures that Apple's devices will continue to benefit from advanced wireless technologies, including improved Wi-Fi and Bluetooth performance, better RF efficiency for 5G connectivity, and potentially longer battery life through optimised custom silicon. The FBAR filters produced in Fort Collins are critical components that help devices filter wireless signals more effectively.
Read more about Google's push in open-source AI models and AMD's challenge to Nvidia's AI chip dominance for broader context on the evolving semiconductor landscape.
FAQs
How much is the Apple-Broadcom deal worth?
The multiyear agreement is expected to exceed $30 billion over its lifetime.
How many chips will be produced?
More than 15 billion US-made chips will be produced as part of the agreement.
What will Broadcom produce for Apple?
Broadcom will produce custom silicon components, advanced radio frequency components including FBAR filters, and wireless connectivity technologies at its Fort Collins, Colorado facility.
How long does the deal run?
The multiyear agreement runs through 2031, extending the long-standing Apple-Broadcom partnership.
What is Apple's American Manufacturing Program?
AMP is an initiative launched last year to accelerate US-based manufacturing. The Broadcom deal represents Apple's largest AMP commitment to date.
