Colorado: Apple has entered into a multiyear semiconductor supply agreement worth more than $30 billion with Broadcom Inc., marking one of the company’s largest manufacturing commitments in the United States. The partnership, which will run through 2031, is expected to significantly strengthen domestic chip production while supporting Apple’s long-term strategy of building a more resilient US-based silicon supply chain.
Under the agreement, Broadcom will design and manufacture custom silicon components and wireless connectivity technologies for a wide range of Apple devices. A major focus of the partnership will be the production of FBAR (Film Bulk Acoustic Resonator) filters, specialized radio-frequency chips that play a crucial role in enabling wireless communication in smartphones, tablets, and other connected devices. Broadcom has reportedly been developing these advanced filters since 2023.
Apple said the collaboration is expected to result in the production of more than 15 billion chips in the United States over the duration of the agreement. The initiative is also projected to support hundreds of American jobs while expanding the country’s advanced semiconductor manufacturing capabilities.
As part of the deal, Broadcom will invest $1.5 billion to expand its manufacturing facility in Fort Collins, Colorado, which will serve as a key production hub for the chips covered under the agreement. The investment is expected to enhance production capacity and reinforce the domestic supply chain for Apple’s hardware ecosystem.
Commenting on the announcement, Apple CEO Tim Cook said the advanced components manufactured in Fort Collins are vital to delivering the performance and connectivity customers expect from Apple products. He added that the company is proud to deepen its investment in US-based suppliers that share Apple’s commitment to innovation and manufacturing excellence.
The agreement also represents the largest commitment made under Apple’s American Manufacturing Program (AMP), an initiative aimed at supporting US-based manufacturers and encouraging domestic production. Apple said the latest investment aligns with its broader pledge to contribute $600 billion to the US economy over a four-year period through manufacturing, innovation, research, and job creation.
Broadcom President and CEO Hock Tan welcomed the expanded collaboration, highlighting the decades-long relationship between the two companies. He said Broadcom shares Apple’s commitment to American innovation and expressed confidence that the investment would further strengthen the company’s manufacturing footprint in Colorado while advancing technologies that connect users worldwide.
The announcement comes as governments and technology companies increasingly seek to localize semiconductor production amid ongoing concerns over global supply chain disruptions and geopolitical uncertainties. The partnership also aligns with efforts to expand advanced chip manufacturing within the United States.
Broadcom has been actively expanding its role in the artificial intelligence sector as well. Last month, the company unveiled Jalapeno, a custom AI inference chip developed in collaboration with OpenAI. The processor is designed to improve the efficiency of running large language models by optimizing compute, networking, memory, and data movement, while reducing dependence on Nvidia’s graphics processing units and lowering AI infrastructure costs.
Investors reacted positively to the announcement, with Broadcom’s shares rising by more than 4 per cent following the news. Apple shares, however, edged slightly lower despite the strategic significance of the long-term partnership.
