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Apple has signed a new multiyear agreement with Broadcom to design and produce custom silicon parts and wireless connectivity chips for its devices. The deal is expected to exceed $30 billion and run through 2031.
The agreement comes as Apple increases its spending with US-based suppliers. It also fits into the company’s wider plan to invest $600 billion in the US economy over four years.
Apple said the deal will cover advanced radio-frequency components, including FBAR filters. These chips help power wireless communication features in Apple products, including mobile and connectivity functions.
The company has worked with Broadcom for years on wireless components. The new agreement expands that supplier relationship and gives Apple a larger US-based production path for key parts used across its product line.
Apple expects the agreement to lead to the production of more than 15 billion chips in the United States. The company said the deal will also back hundreds of American jobs tied to chip production and related manufacturing work.
The agreement is the largest commitment so far under Apple’s American Manufacturing Program. Apple launched the program to increase domestic production and work more closely with US suppliers.
Meanwhile, Broadcom will invest $1.5 billion to expand and modernize its facility in Fort Collins, Colorado. The site will produce radio-frequency components and advanced wireless connectivity technologies for Apple devices.
The Fort Collins plant plays a central role in the new agreement. Apple said components made there are used to deliver device performance and wireless connectivity expected by its customers.
Apple CEO Tim Cook said, “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 US-based suppliers that share our commitment to excellence and innovation.”
Broadcom President and CEO Hock Tan also welcomed the agreement. He said, “Broadcom is proud to continue to work with Apple after decades of success together, and we share a strong commitment to American innovation.”
Notably, the agreement comes as Apple works with federal officials and domestic companies to build more of its silicon supply chain inside the United States. The company has named Broadcom as part of that wider domestic manufacturing push.
Apple said the Broadcom deal forms part of its $600 billion US investment plan. That spending covers manufacturing, job creation, supplier growth, and technology development across the country.
The deal also arrives during a broader policy push to increase chip production in the United States. President Donald Trump’s administration has urged large technology companies to expand domestic manufacturing and reduce reliance on foreign supply chains.
Following the announcement, Broadcom shares rose more than 4 percent, while Apple shares moved slightly lower. Investors reacted to the supply agreement as Apple placed more spending behind US-made chip parts and Broadcom expanded its role as a long-term supplier.
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