Apple is expanding its partnership with Broadcom and will spend over $30 billion on components manufactured in the United States by 2031. This move both secures the supply of key communications chips and responds to pressure from Washington, which expects the largest technology firms to increase domestic production.
The agreement covers, amongst other things, FBAR filters – small chips responsible for handling radio signals in wireless devices. Broadcom has also announced that the partnership will include the development of custom ASIC chips for future generations of Apple products.
As part of the contract, Broadcom will invest $1.5 billion in expanding its factory in Fort Collins, Colorado. Apple estimates that the agreement will lead to the production of at least 15 billion chips in the US. For Broadcom, this means long-term predictability of orders, which is particularly important at a time when Apple is increasingly designing its own components and reducing its reliance on external suppliers.
“The state-of-the-art components built in Fort Collins are essential to delivering the incredible performance and connectivity our customers expect, and we are proud to deepen our investment in American suppliers who share our commitment to excellence and innovation,” said Apple’s Chief Executive Tim Cook in a statement.
“We are grateful to the President and his administration for supporting important projects such as this one.”
The agreement forms part of Apple’s plan, announced in 2025, to spend and invest $600 billion in the US over four years. At the time, the company increased its previous commitment by $100 billion and launched the American Manufacturing Programme, which aims to develop the US supply chain for advanced components.
However, this does not mean that the entire production of Apple devices will be moved to the United States. The company continues to rely on Asian partners for the assembly of most of its hardware, but is sourcing an increasing proportion of strategic components locally. In practice, Apple is building a safeguard against tariffs and trade tensions, whilst maintaining its global manufacturing model.
