Apple Inc. (NASDAQ: AAPL) said it will spend more than $30 billion under a new multi-year agreement with Broadcom Inc. (NASDAQ: AVGO) to design and manufacture custom silicon and wireless connectivity components in the United States, expanding domestic chip production as the company strengthens its U.S. supply chain.
The agreement is expected to result in the production of more than 15 billion chips in the United States and support hundreds of manufacturing jobs, the companies said.
As part of the partnership, Broadcom will invest $1.5 billion to expand and modernize its semiconductor manufacturing facility in Fort Collins, Colorado. The site will produce advanced radio frequency (RF) components, including Film Bulk Acoustic Resonator (FBAR) filters, along with wireless connectivity technologies used across Apple’s product portfolio.
The investment forms part of Apple’s American Manufacturing Program (AMP), launched last year to increase domestic production and strengthen the U.S. semiconductor supply chain. Apple said the agreement represents the largest commitment made under the programme to date.
The announcement comes as major technology companies increase investments in U.S.-based semiconductor manufacturing amid government efforts to expand domestic chip production and reduce reliance on overseas supply chains.
“Apple and Broadcom have a long history together, and this new phase of our partnership further accelerates our commitment to American manufacturing and innovation,” Chief Executive Officer Tim Cook said in a statement.
Cook said the components produced in Colorado would support the performance and wireless connectivity of future Apple devices.
Broadcom Chief Executive Officer Hock Tan said the agreement would expand the company’s manufacturing footprint in Fort Collins while extending a long-standing partnership between the two companies.
The investment is also part of Apple’s previously announced plan to invest $600 billion in the U.S. economy over four years, with spending directed toward manufacturing, research and development, supplier expansion and job creation.
Broadcom is one of Apple’s longstanding semiconductor suppliers, providing custom connectivity and networking technologies used across multiple product lines. The latest agreement further deepens that relationship while supporting broader efforts to localize semiconductor manufacturing in the United States.
