Apple to spend $30B on Broadcom chips
What's the story
Apple has announced a major investment of over $30 billion as part of a chip supply deal with Broadcom. The agreement, which was finalized earlier this week, also includes plans for Broadcom to expand its factory in Fort Collins, Colorado. This factory will be funded by a $1.5 billion investment from Broadcom and is expected to produce at least 15 billion chips over time.
Domestic sourcing
Partnership with Broadcom
The deal is part of Apple's ongoing efforts, in collaboration with the Trump administration, to increase domestic chip production. The company has been working with Broadcom on a radio frequency chip called FBAR filters since at least 2023. This technology will enable wireless communication for Apple devices and further strengthen the partnership between the two tech giants.
Supplier significance
Tim Cook's statement
Apple's CEO Tim Cook stressed the importance of US-based suppliers in delivering high-quality components. "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 US-based suppliers that share our commitment to excellence and innovation," he said.