Broadcom has secured a multiyear chip supply agreement with Apple valued at over $30 billion and extending through 2031, marking the semiconductor company’s largest long-term commitment from its most important customer. The deal, announced on July 8, represents Apple’s biggest investment under its American Manufacturing Program and signals a deepening partnership between the two companies on custom silicon and wireless connectivity components.
The agreement will result in the production of more than 15 billion U.S.-made chips over the deal’s lifetime, according to Apple’s statement. Broadcom will design and produce custom silicon components and cutting-edge wireless connectivity technologies for a range of Apple products, with production concentrated at the company’s Fort Collins, Colorado facility.
Apple accounts for approximately 20% of Broadcom’s annual revenue, making this extended commitment a critical anchor for the chipmaker’s business. The $30 billion deal works out to roughly $6 billion annually, which analysts say provides Broadcom with a predictable, multi-year revenue stream even as the semiconductor industry grapples with volatile AI-driven demand cycles.
Fort Collins Expansion and U.S. Manufacturing Push
As part of the agreement, Broadcom will invest $1.5 billion to expand and modernize its manufacturing facilities in Fort Collins, Colorado, Apple’s largest manufacturing commitment to date under its American Manufacturing Program. The facility, Broadcom’s largest manufacturing operation worldwide, will produce advanced radio frequency components—including FBAR filters—and advanced wireless connectivity technologies.
The expansion is expected to support hundreds of American jobs and advances Apple’s broader effort to build an end-to-end silicon supply chain in the United States. Tim Cook, Apple’s CEO, said in the announcement: “The cutting-edge components built in Fort Collins are essential to delivering the incredible performance and connectivity our customers expect, and we’re proud to deepen our investments in U.S.-based suppliers that share our commitment to excellence and innovation.”
Broadcom President and CEO Hock Tan echoed the sentiment, stating that the company is “pleased to expand our manufacturing footprint in Fort Collins, where we create groundbreaking technology that connects people around the world.” The deal reflects a broader trend of tech companies investing in domestic manufacturing to reduce supply chain vulnerabilities and align with government incentives supporting U.S. chip production.
Sources
- Apple Newsroom — Official press release confirming the $30 billion deal, 15 billion chip production target, $1.5 billion Fort Collins expansion, and job creation details
- CNBC — Reporting on the deal’s scope, Fort Collins expansion, and its role in Apple’s U.S. manufacturing push
- Reuters — Coverage of Broadcom’s extended partnership with Apple through 2031 and the custom chip development agreement
- AOL / Financial Sources — Analyst commentary confirming Apple represents approximately 20% of Broadcom’s annual revenue and the $6 billion annual run-rate calculation
- Fort Collins Area Chamber of Commerce — Confirmation that the Fort Collins facility is Broadcom’s largest manufacturing facility worldwide
