Apple (NASDAQ:AAPL) will invest more than $30 billion under a long-term semiconductor supply agreement with Broadcom (NASDAQ:AVGO), a partnership that will also fund a major expansion of Broadcom’s manufacturing facility in Colorado.
Long-Term Agreement Supports U.S. Chip Production
Broadcom announced earlier this week that it had signed a supply agreement with Apple running through 2031. On Wednesday, Apple confirmed the partnership centres on FBAR radio-frequency filters, components used to enable wireless connectivity across its devices and jointly developed with Broadcom since at least 2023.
As part of the agreement, Broadcom will invest $1.5 billion to expand its production facility in Fort Collins, Colorado.
Apple said the collaboration is expected to result in the manufacture of at least 15 billion chips and forms part of its broader strategy to source a greater share of key components from U.S.-based suppliers, in line with initiatives supported by the administration of President Donald Trump.
Cook Highlights U.S. Manufacturing Investment
“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.”