• Apple expanded its Broadcom deal to over $30 billion, covering more than 15 billion US-made chips.
  • The move boosts Apple’s US supply-chain push, though most hardware production remains in Asia.

Apple has expanded its partnership with chipmaker Broadcom in a deal worth more than $30 billion. The agreement is expected to produce 15 billion US-made chips and marks its largest commitment yet under Apple’s American Manufacturing Program (AMP). ⁽¹⁾

The move builds on years of collaboration between the two companies and adds fresh weight to Apple’s promise to invest $600 billion in the US economy over four years. ⁽²⁾

What the Deal Covers

Broadcom will design and produce custom silicon components and wireless connectivity technology for a wide range of Apple products. Broadcom also announced it would supply Apple with custom chips through 2031.

A key part of the deal is a $1.5 billion investment in Broadcom’s manufacturing plant in Fort Collins, Colorado.

Apple will help Broadcom expand and modernize the facility, which will produce advanced radio frequency components, alongside wireless technology. Apple says the investment will support hundreds of American jobs. ⁽³⁾

Market Reaction

Investors responded quickly. Broadcom shares climbed as much as 4.8% during the session, reaching an intraday high of $407.52, before closing 3.2% higher at $401.11. Apple gained 0.9% to close at $316.22.

The broader market also rallied, led by semiconductor and technology stocks. The S&P 500 gained 0.8%, the Nasdaq 100 advanced 1.62%, and the Dow Jones Industrial Average rose 0.3%. Broadcom still outperformed the major indices as chip stocks drove the market higher.

Apple’s US Strategy

Apple has been under pressure to bring more of its manufacturing home. President Trump previously threatened the company with a 25% tariff on products made overseas. Apple’s response has been to lean into domestic investment, and this deal is its biggest step yet under AMP.

Broadcom was among the first to join the program, and other names have since been added, including Samsung and Texas Instruments. In March, Apple brought in four more partners, with a separate $400 million commitment through 2030. ⁽⁴⁾

Most of Apple’s hardware, including iPhones and iPads, is still made in Asia. China remains the primary hub for hardware production, though some production has shifted to Vietnam, Thailand, and India.

The Broadcom deal does not change this picture overnight, but it does signal where Apple wants its supply chain to move.

A Long Partnership with New Stakes

Apple and Broadcom have been working together for a long time, mainly on wireless components. That relationship continues even as Apple decided to move some wireless chip design work in-house over the past year. ⁽⁵⁾

Broadcom is also involved in chip technology tied to Apple’s plans for its first dedicated AI server, expected as early as next year. That detail places this deal inside a bigger story, where Apple is racing to build out AI infrastructure, and it needs suppliers who can scale with it. ⁽⁶⁾

Apple CEO Tim Cook called the partnership a “new phase” and thanked the Trump administration for supporting the project.

Cook is set to step down as Apple CEO on September 1, with longtime hardware chief John Ternus taking over. Broadcom CEO Hock Tan said the company remains proud of its long collaboration with Apple. ⁽⁷⁾

Sources: ⁽¹⁾ ⁽²⁾ Apple Newsroom, ⁽⁴⁾ ⁽³⁾ Dow Jones Newswire, ⁽⁵⁾ ⁽⁶⁾ ⁽⁷⁾ Reuters