Apple’s $30B Broadcom Chip Deal

According to Apple, the company will invest more than US$30 billion in chip purchases under a long-term supply agreement with Broadcom and support the expansion of Broadcom’s manufacturing operations in Colorado. The move is intended to strengthen the U.S. semiconductor supply chain and aligns with the U.S. government’s broader push to expand domestic chip production.

Broadcom disclosed earlier this week that it had signed a long-term supply agreement with Apple extending through 2031. Apple later confirmed that the collaboration will focus on FBAR (Film Bulk Acoustic Resonator) radio frequency filter chips, which are used in wireless communication systems for devices such as the iPhone.

FBAR filters are critical components in RF front-end modules, helping improve signal quality, connectivity stability, and performance for 5G, Wi-Fi, and other wireless technologies. Apple stated that it has been co-developing the technology with Broadcom since at least 2023.

As part of the agreement, Broadcom plans to invest US$1.5 billion to expand its manufacturing facility in Fort Collins. Apple said the site is expected to produce at least 15 billion FBAR chips for use in future Apple products, further expanding advanced semiconductor manufacturing capacity within the United States.

Apple described the initiative as part of its ongoing effort to increase investment in its U.S. supply chain and support the development of domestic semiconductor manufacturing capabilities.

Apple CEO Tim Cook said the advanced components produced in Fort Collins are essential to delivering the high performance and reliable connectivity expected from Apple products. He added that Apple is pleased to deepen its investment in U.S.-based manufacturing and collaborate with partners that share a commitment to innovation.

Cook also expressed appreciation for the support of the U.S. administration for the investment initiative, noting that it contributes to strengthening domestic high-tech manufacturing capacity and supply chain resilience. As global technology companies continue to adjust their supply chain strategies, Apple’s expanded U.S. chip procurement and investment underscore the acceleration of its localized manufacturing approach.