Apple-Broadcom Signs 30 Billion US Dollar Deal, Prepares 15 Billion US-Made Chips

Apple has expanded its commitment to chip production in the United States through a multi-year deal with Broadcom. The value of the cooperation is estimated to exceed 30 billion US dollars.

Anadolu Agency quoted Wednesday, July 8, saying the deal was Apple's largest manufacturing commitment in the US so far. The cooperation is expected to support the production of more than 15 billion US-made chips.

This cooperation package also includes the expansion of Broadcom's facility in Fort Collins, Colorado, worth 1.5 billion US dollars. However, Apple has not detailed when the new capacity will start operating.

Broadcom has long supplied connectivity components for Apple. Through this new deal, the cooperation between the two companies has expanded to custom silicon made in the US.

Custom silicon is a chip designed specifically for the needs of a particular company or device. In this cooperation, Broadcom will produce wireless components used in Apple devices to connect to cellular, Wi-Fi, and Bluetooth networks.

Broadcom also revealed in a document submitted to the US Securities and Exchange Commission or SEC on Monday that the company had signed a new long-term agreement with Apple.

The agreement includes the development and supply of "custom ASIC silicon products" for several generations of Apple products until 2031.

ASIC or application-specific integrated circuit is a chip that is made for a specific function. This type of chip is increasingly used for artificial intelligence or AI processing needs.

For Apple CEO Tim Cook, who will soon end his tenure, this deal is another step in Apple's push to expand domestic manufacturing. That direction is also one of the top priorities of the Donald Trump administration.

The deal with Broadcom is the largest commitment to date in Apple's American Manufacturing Program. The program was launched to expand domestic production throughout the company's supply chain.

This deal is also part of Apple's investment plan in the US worth 600 billion US dollars over four years announced in 2025.

"Apple has been working with governments and companies across the US to help create a comprehensive silicon supply chain in America, and today's announcement advances those efforts," Apple said in a statement quoted by Anadolu.

Cook said the components made in Fort Collins are critical to the performance and connectivity that Apple customers expect.

Broadcom CEO Hock Tan said Apple's commitment would help the company expand production capacity in Colorado.