Apple Commits $30 Billion to Broadcom in Largest U.S. Chipmaking Deal
- Apple's $30 billion-plus agreement with Broadcom is its largest commitment under the American Manufacturing Program, running through 2031 [1]
- The deal will produce more than 15 billion U.S.-made chips, including FBAR filters, Wi-Fi, and Bluetooth components [2]
- Broadcom will invest $1.5 billion to expand and modernize its Fort Collins, Colorado manufacturing facility [3]
- The agreement is part of Apple's broader $600 billion four-year U.S. investment pledge [2]
- Both AAPL and AVGO shares traded lower on the day of the announcement, down 0.6% and 0.8% respectively [5]
Apple on Wednesday announced a chipmaking agreement with Broadcom valued at more than $30 billion, its largest single American manufacturing commitment to date. The multiyear deal extends through 2031 and will result in the production of more than 15 billion U.S.-made chips across Broadcom's portfolio of radio frequency, Wi-Fi, and Bluetooth components [1][2].
As part of the agreement, Broadcom will invest $1.5 billion to expand and modernize its manufacturing facility in Fort Collins, Colorado, where it produces advanced radio frequency components including FBAR filters and wireless connectivity technologies used across Apple's product lineup [3].
The deal represents the largest commitment under Apple's American Manufacturing Program, which the company launched alongside a pledge to invest $600 billion in the United States over four years. Apple previously announced a separate chip partnership with Samsung under the same program [2].
The Deal
Apple and Broadcom signed new long-term contracts running through 2031 covering the development and supply of custom ASIC silicon products across several future generations of Apple hardware. The agreement is expected to exceed $30 billion in total value and encompasses custom radio frequency components, Wi-Fi and Bluetooth connectivity chips, and other networking semiconductors found throughout Apple's device ecosystem [1][2].
The chips will be manufactured at Broadcom's Fort Collins, Colorado facility, which will receive a $1.5 billion capital investment for expansion and modernization. The deal is expected to support hundreds of American jobs at the site [3].
Why It Matters
The $30 billion commitment is the single largest deal Apple has struck under its American Manufacturing Program, underscoring the company's push to anchor more of its supply chain on U.S. soil. Apple has faced sustained political pressure — from both the Trump and Biden administrations — to reduce its dependence on Asian manufacturing, particularly in China [2].
For Broadcom, the agreement locks in a major customer for its wireless components business through the end of the decade. Broadcom CEO Hock Tan has been steering the $1.76 trillion company deeper into custom silicon and infrastructure software since acquiring VMware in 2023 [4].
The deal also fits within the broader U.S. semiconductor reshoring trend, which has seen tens of billions in new domestic fabrication commitments from TSMC, Intel, and Samsung in recent years, aided by the 2022 CHIPS Act.
Market Reaction
Despite the headline-grabbing size of the commitment, both stocks traded lower on the day of the announcement. Apple shares fell 0.6% to $310.66, giving the company a market capitalization of roughly $4.56 trillion. Broadcom declined 0.8% to $370.78, putting its market cap at approximately $1.76 trillion [5].
Barron's noted that both stocks slipped despite the partnership's scale, suggesting investors may have already priced in the deal or viewed it as a formalization of an existing supplier relationship rather than a new revenue catalyst [6].
Apple shares are up 14.3% year to date, while Broadcom has gained 7.1% in 2026 [5].
What's Next
The agreement runs through 2031, giving Broadcom a multiyear revenue floor from its largest customer. Apple's broader $600 billion U.S. investment pledge, announced roughly a year ago, continues to roll out across manufacturing, data center, and supplier commitments [2].
Apple is expected to detail further domestic investment plans in the coming quarters as it navigates ongoing trade tensions and supply chain diversification away from China. The company has already announced a Samsung chip partnership under the same program [2].
Further sources
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