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Apple and Broadcom Announce Multi-Billion Dollar Deal for US-Made Chips
Apple has announced a multi-year, multi-billion dollar agreement with Broadcom for the supply of key components for its devices. The deal, valued at over $30 billion and extending through 2031, covers FBAR filters, which are radio-frequency chips used for wireless connectivity.
As part of the agreement, Broadcom will invest $1.5 billion to expand its factory in Fort Collins, Colorado. The investment is intended to support the production of at least 15 billion chips and bolster Apple's efforts to source more components domestically.
In a statement, 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 U.S.-based suppliers that share our commitment to excellence and innovation." The move aligns with a broader push to expand domestic chip manufacturing.
AdFollowing the announcement, Broadcom's shares rose more than 4%, while Apple's shares were reported to be down marginally. The deal is part of Apple's larger U.S. investment commitment, which it previously raised to $600 billion over a four-year period.