SAN FRANCISCO — Apple plans to spend more than $30 billion as part of a chip-supply agreement with Broadcom that will see the chipmaker expand a factory in Colorado, the companies announced on Wednesday.
The deal — one of the largest American semiconductor manufacturing commitments — will result in the production of at least 15 billion chips and is part of Apple's work with the Trump administration to source more of its components from the U.S.
Broadcom disclosed on Monday it had secured a long-term supply deal through 2031 with the iPhone maker. On Wednesday, Apple revealed that the deal involves a critical radiofrequency chip called FBAR filters, which help Apple devices communicate wirelessly — technology Apple has been developing with Broadcom since at least 2023.
As part of the agreement, Broadcom will spend $1.5 billion to expand a factory in Fort Collins, Colorado.
"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," Apple CEO Tim Cook said in a statement. "We're grateful to the president and his administration for supporting important projects like this."
The deal comes as major tech companies increasingly invest in domestic chip manufacturing to reduce reliance on Asian supply chains amid rising geopolitical tensions. The U.S. CHIPS Act, passed in 2022, allocated $52.7 billion to boost American semiconductor manufacturing, and the Apple-Broadcom agreement marks one of the most significant private-sector commitments under that broader push.
Apple has been among the most aggressive tech companies in reshoring chip production, previously announcing multi-billion dollar commitments to TSMC's Arizona fabrication plants. The Broadcom deal extends that strategy into radiofrequency components, a critical area for 5G and future wireless connectivity.
