Apple Strikes $30 Billion Broadcom Supply Agreement
Synopsis
Key Highlights Apple's $ 30 billion chip deal with Broadcom will spend over US$30 billion on Broadcom chips through 2031. Broadcom will add to its Fort Collins factory for US$1.5 billion in new chip…
Key Highlights
- Apple's $ 30 billion chip deal with Broadcom will spend over US$30 billion on Broadcom chips through 2031.
- Broadcom will add to its Fort Collins factory for US$1.5 billion in new chip capacity, producing at least 15 billion chips.
- Broadcom was up more than 4% while Apple dipped slightly.
Apple will spend over US$30 billion per multi-year agreement with Broadcom through 2031 In addition to the US$1.5 billion investment by Broadcom itself to expand the Fort Collins, Colorado factory. This deal will include the production of over 15 billion chips to support the Trump administration. Broadcom rose 4% plus after the announcement, while Apple was slightly lower.
Deal Supports US Chip Manufacturing
The deal involves FBAR filters, or radiofrequency chips that Apple utilises for wireless connectivity in its devices. Apple stated that it has been working on these chips with Broadcom since at least 2023.
Overall, availability of a good amount of U.S. silicon to accompany its Apple US chip manufacturing push, but Broadcom’s funding upgrade at its Fort Collins factory dovetails directly to increase sourcing in generaintending to increaseIn a statement, Apple CEO Tim Cook noted the critical role that components made in Fort Collins play in enhancing the performance and connectivity of Apple products and said the company is increasing its investment with U.S. suppliers.
One Piece of Apple’s Bigger Bet on the U.S.
The Apple American Manufacturing Program is growing along with the company's domestic spending.
Apple reported its four-year U.S. investment commitment in August 2025, announcing a US$100 billion hike on top of the US$500 billion previously presented to reach US$600 billion.
This new one cements Apple's long-term partnership with Broadcom while further increasing chip manufacturing capacity in the U.S. through 2031.
Source: Reuters
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