Key Takeaways
- Apple plans a multi-year chip supply deal worth over $30 billion with Broadcom.
- The agreement will see the expansion of Broadcom's Fort Collins factory by $1.5 billion.
- This investment aims to boost domestic sourcing and support Trump administration’s initiatives.
Apple has announced a significant multi-year chip supply deal worth over $30 billion with semiconductor company Broadcom, aimed at bolstering its U.S.-based component manufacturing. The agreement, which was struck earlier this week and will run through to 2031, covers the production of FBAR filters – essential radio-frequency chips used for wireless connectivity in Apple’s devices.
According to a statement from Apple CEO Tim Cook, the deal is part of the company's broader strategy to deepen its investments in U.S.-based suppliers that share its commitment to excellence and innovation. 'The cutting-edge components built in Fort Collins are essential to delivering the incredible performance and connectivity our customers expect,' said Cook.
As part of this agreement, Broadcom will invest $1.5 billion to expand its facilities in Fort Collins, Colorado, which is expected to result in the production of at least 15 billion chips annually. This investment aligns with Apple's commitment to sourcing more components domestically and supports President Donald Trump’s administration’s efforts to expand domestic chip manufacturing.
In August 2025, Apple had already raised its U.S. investment commitment to $600 billion over four years, adding an additional $100 billion to a previously announced spending plan. This latest deal underscores the company's ongoing dedication to strengthening its supply chain and supporting local manufacturing in the United States.
The agreement with Broadcom is seen as a significant step towards Apple’s goal of reducing reliance on foreign suppliers and enhancing its control over critical components. 'We’re grateful to the president and his administration for supporting important projects like this,' Cook added, highlighting the alignment between Apple's business strategy and government initiatives.
Broadcom shares rose more than 4% following the announcement, while Apple’s stock showed a marginal decline. The deal is expected to have a positive impact on both companies by fostering closer collaboration and ensuring a steady supply of high-quality components for Apple’s products.
'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.'
Tim Cook, Apple CEO
