Apple and Broadcom deepen US chip partnership with $30 billion deal

Apple and Broadcom have signed a multiyear agreement valued at more than $30 billion to develop and manufacture custom silicon and advanced wireless components for Apple products. The deal calls for the production of over 15 billion chips in the United States and is a central element of Apple’s American Manufacturing Program, which aims to invest $600 billion in the U.S. economy over four years.

Broadcom will invest $1.5 billion to expand and modernise its Fab in Fort Collins, Colorado, where it will produce radio‑frequency components such as FBAR filters for Apple devices. Executives Tim Cook and Hock Tan highlighted the partnership’s role in strengthening the domestic semiconductor supply chain and creating jobs.

Analysts note that the agreement, which deepens Broadcom’s reliance on Apple – already about 20 % of its revenue – has sparked mixed reactions in the market. Broadcom’s share price rose after the announcement, but concerns remain about valuation and customer concentration. The company also projected AI‑related silicon revenue of $16 billion for the third quarter, underscoring the strategic importance of the partnership for both firms.