Apple announced on Wednesday that it will invest over $30 billion in a larger partnership with Broadcom to make custom chips. This is the biggest deal so far under Apple’s American Manufacturing Program.
Part of the deal includes $1.5 billion to expand and update Broadcom’s manufacturing facilities in Fort Collins, Colorado. This will allow them to produce over 15 billion chips in the US. After the news, Apple’s stock fell 0.5% in early trading, while Broadcom’s stock rose 3.7%, recovering from earlier declines.
This agreement comes after Broadcom said on Monday it would supply Apple with custom application-specific integrated circuits (ASICs) until 2031. The financial details of that deal were not shared before. The announcement happened during a period of market volatility, as investors pulled back from tech stocks after President Trump said the US-Iran cease-fire had ended. Markets later calmed down.
This investment fits into Apple’s larger plan to boost US manufacturing. The company has promised to invest $600 billion in the US over four years, which has mostly protected it from tariffs set by the Trump administration.
Apple CEO Tim Cook described the expanded partnership as a continuation of the company’s long relationship with Broadcom. He highlighted how important the Fort Collins-made components are for Apple’s product performance and connectivity, and said Apple remains committed to working with US suppliers.
