Broadcom secured a multiyear chip supply agreement with Apple expected to exceed $30 billion, with the deal running through 2031 and marking Apple’s largest commitment under its American Manufacturing Program to date.
The partnership, announced on July 8, 2026, will result in the production of more than 15 billion U.S.-made chips designed for a wide range of Apple products. Broadcom will design and produce custom silicon components and cutting-edge wireless connectivity technologies, including advanced radio frequency components and FBAR filters.
As part of the agreement, Broadcom will invest $1.5 billion in capital expenditure to expand and modernize its manufacturing facilities in Fort Collins, Colorado. The facility will produce advanced radio frequency components and wireless connectivity technologies that Apple uses across multiple product generations, according to Apple’s announcement.
“Apple and Broadcom have a long history together, and this new phase of our partnership further accelerates our commitment to American manufacturing and innovation,” said Tim Cook, Apple’s CEO, in the official announcement. “The cutting-edge components built in Fort Collins are essential to delivering the incredible performance and connectivity our customers expect.”
Broadcom’s CEO Hock Tan added: “With Apple’s newest commitment, we’re pleased to expand our manufacturing footprint in Fort Collins, where we create groundbreaking technology that connects people around the world.” Broadcom is part of Apple’s American Manufacturing Program, launched last year to accelerate manufacturing in the U.S.
The expanded partnership deepens a relationship that has spanned more than a decade. Analysts estimate that Apple accounts for roughly 20% of Broadcom’s annual revenue, making the extension through 2031 a significant source of long-term revenue visibility. The deal also expands Broadcom’s role beyond traditional wireless and RF components into custom application-specific integrated circuits (ASICs)—a higher-value area tied to artificial intelligence infrastructure.
Broadcom shares climbed more than 4% on Wednesday following Apple’s disclosure of the financial terms. The agreement comes as both companies work to strengthen U.S.-based semiconductor supply chains. Apple said the investments are part of its broader commitment to invest $600 billion in the U.S. economy over four years, supporting manufacturing, job creation, and technology development across the country.
According to analyst commentary, the deal benefits both parties. For Apple, it provides supply chain certainty while supporting its efforts to build an end-to-end silicon supply chain in America. For Broadcom, the long-term commitment from one of its largest customers provides stable revenue visibility and positions the chipmaker deeper in Apple’s AI infrastructure strategy, where custom silicon demand is accelerating.
Sources
- Apple Newsroom — Official announcement of the $30 billion Broadcom agreement, production targets, and Colorado facility investment details
- Reuters — Reporting on the multiyear chip supply deal and Colorado factory expansion
- CNBC — Coverage of Apple’s $30 billion commitment to Broadcom for U.S. chipmaking
- Barchart.com — Analysis of the deal’s impact on Broadcom stock, Apple’s revenue percentage, and analyst sentiment
- The Colorado Sun — Details on Broadcom’s Fort Collins facility expansion and the $1.5 billion investment
