Apple is making its biggest bet yet on American manufacturing, locking in a landmark agreement with Broadcom expected to top $30 billion.
The multi-year deal secures a domestic supply of critical wireless components, signaling a strategic move to fortify its U.S. supply chain amid global uncertainty.
A $30 Billion Bet on American Manufacturing
Apple is expanding its two-decade partnership with Broadcom through a new multi-billion dollar agreement announced Wednesday. Valued at over $30 billion, the deal centers on designing and building custom silicon and wireless connectivity components entirely within the United States.
This commitment marks the largest single investment under Apple’s American Manufacturing Program (AMP). It's a cornerstone of the company's ambitious pledge, announced last year, to invest $600 billion in the U.S. economy over a four-year period.
At the core of the agreement is the stateside production of more than 15 billion chips. These components are essential for connecting iPhones and other devices to cellular, Wi-Fi, and Bluetooth networks.
A separate regulatory filing confirms the partnership extends through 2031 for the development of "custom ASIC silicon products," specialized chips that are increasingly critical for powering on-device artificial intelligence.
Fort Collins Facility at the Center
A $1.5 billion capital investment will expand and modernize Broadcom's key manufacturing facility in Fort Collins, Colorado. This expansion is expected to support hundreds of skilled jobs, though a timeline for the new capacity was not released.
"Apple and Broadcom have a long history together, and this new phase of our partnership further accelerates our commitment to American manufacturing and innovation," Apple CEO Tim Cook said in a statement. He noted the components are "essential to delivering the incredible performance and connectivity our customers expect."
Broadcom's CEO Hock Tan added, "With Apple’s newest commitment, we’re pleased to expand our manufacturing footprint in Fort Collins."
For both companies, these statements signal a critical alignment: Apple secures a high-volume domestic supply of essential technology, while Broadcom locks in its most important customer for years to come.
Bolstering the U.S. Supply Chain
This deal is a cornerstone of Apple's push to build an "end-to-end silicon supply chain in America." The move also aligns with a multi-administration government effort, backed by initiatives like the CHIPS Act, to reshore advanced manufacturing.
In the announcement, Cook acknowledged the broad support for such projects, which follows other U.S.-based efforts by Apple, including the production of AI servers in Houston.