Apple enters into USD 30 billion chip partnership with Broadcom
California, July 8
,: Apple has entered into a USD 30 billion partnership with Broadcom to build custom chips and cutting-edge wireless connectivity technologies for its products.
The agreement between the two US tech players aims to expand the domestic manufacturing of chips. Apple said that the multiyear commitment with Broadcom will lead to the production of 15 billion US-made chips, thereby supporting hundreds of American jobs.
"Apple and Broadcom have a long history together, and this new phase of our partnership further accelerates our commitment to American manufacturing and innovation," Apple CEO Tim Cook said.
Cook said the company is deepening its investments in US-based suppliers, and thanked President Donald Trump and the US administration for supporting the efforts.
The agreement with Broadcom will be Apple's largest commitment as part of its American Manufacturing Program (AMP) that was launched last year to bolster US manufacturing. Broadcom is part of Apple's AMP initiative. The agreement will also see Broadcom expand and modernise its manufacturing facilities in Fort Collins, Colorado, with a $1.5 billion capital expenditure investment.
The US chipmaker will make advanced radio frequency components -- including FBAR filters -- and advanced wireless connectivity technologies at the Fort Collins facility.
"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 President and CEO Hock Tan said.
In an SEC filing on July 6, Broadcom announced that it has entered into an agreement with Apple to expand its long-standing technology collaboration through 2031. It will develop and supply a range of custom ASIC silicon products for use in multiple generations of Apple products.
An ASIC is an application-specific integrated circuit that is used for specific tasks rather than being built for general-purpose computing. These chips offer superfast computing along with great efficiency and are used for performing AI tasks.
— ANI
Reader Comments
Good for US jobs, but sad to see Apple promoting Trump's policies. Tim Cook thanking Trump? I'm not a fan of that. Tech companies should stay apolitical. Also, these chips could mean higher iPhone prices for us in India. 😒
As an engineer, this is exciting! Custom ASIC chips for AI tasks will make iPhones even more powerful. But yaar, why can't India attract such investments? We have the brains, just need the infrastructure and policies. Kudos to Apple for focusing on R&D though! 👏
Honestly, this is great for American workers. But for us common Indians, it just means Apple will keep making premium products we can barely afford. Meanwhile, our local manufacturers struggle. We need our own Silicon Valley, not just service-based IT. Jai Hind! 🇮🇳
$30 billion is a massive commitment. Apple's American Manufacturing Program is serious. But I'm skeptical—these chips will still be assembled in China, I bet. Also, Broadcom's CEO Hock Tan is Malaysian-born, so it's a global story. India should take notes on building semiconductor ecosystems.
Apple vs Samsung vs Qualcomm—it's all a big game. Apple wants to control its own chips, which is smart. But as a consumer, I just want affordable iPhones! This partnership might make devices more expensive. Government should push Apple to manufacture in India too. 🍎
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