Apple, Broadcom in $30 Billion Chip Pact

Apple (AAPL) has expanded its multiyear agreement with Broadcom (AVGO) in a deal expected to exceed $30 billion. The arrangement centers on the supply of key semiconductor components and extends an already established supply relationship between the two companies that runs through 2031. The new commitment underscores Apple’s focus on securing long-term access to components that support performance and connectivity in its devices.

The agreement covers the production of more than 15 billion chips manufactured in the United States. These components are intended to support a range of Apple products and form a core part of the company’s silicon needs. The scale of the order highlights the importance of Broadcom as a strategic supplier in Apple’s hardware ecosystem.

A central feature of the deal is its emphasis on U.S.-based chip production. Apple expects the agreement to result in more than 15 billion chips made domestically, advancing efforts to build a more complete silicon supply chain within the country. The initiative is positioned as a step toward strengthening local manufacturing capabilities for advanced components.

Broadcom plans to expand and modernize its manufacturing facility in Fort Collins, Colorado, supported by a $1.5 billion capital expenditure tied to this pact. The upgrade is aimed at increasing capacity for the cutting-edge components Apple is sourcing. The investment is also expected to support hundreds of jobs associated with the increased output and facility enhancements.

Apple states that the expanded Broadcom agreement is part of its American Manufacturing Program. Within that framework, the company describes this deal as its largest single U.S. manufacturing commitment to date. The spending counts toward a previously announced plan to invest $600 billion in the United States over four years.

By anchoring a large portion of its chip procurement in U.S. facilities, Apple links its supply strategy with broader domestic investment goals. The Broadcom partnership aligns long-term chip supply with capital deployment into American plants and equipment. This structure connects Apple’s device roadmap with an ongoing build-out of U.S. semiconductor manufacturing capacity.

For Apple, the expanded agreement provides visibility into the supply of essential components over much of the coming decade. The focus on U.S.-made chips supports operational resilience by concentrating production in facilities that Apple is directly helping to upgrade. It also ties a major portion of its component spending to a single, long-horizon framework.

For Broadcom, Apple’s commitment enables a significant expansion of its U.S. manufacturing footprint. The $1.5 billion Fort Collins investment is backed by a large, multiyear demand pipeline. Together, the companies are positioning the Colorado facility as a key production site for advanced chips serving Apple devices and contributing to the domestic silicon supply chain.