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Apple to increase spend with Broadcom to produce billions more U.S. chips

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custom silicon technical
Custom silicon are specialized computer chips designed and built to perform a specific company's tasks more efficiently than off-the-shelf processors, like a tailor-made engine built for one model of car. For investors, it matters because custom chips can give a company faster performance, lower long-term costs and a competitive edge, while also requiring larger upfront development spending and creating supply or obsolescence risks to monitor.
radio frequency components technical
Radio frequency components are the parts of electronic devices that handle signals traveling through the air or wires at specific high-frequency ranges. They are essential for transmitting and receiving wireless communications, such as radio, television, and mobile signals. Understanding these components helps investors gauge the technological capabilities and growth potential of companies involved in wireless and communication technologies.
capital expenditure financial
Capital expenditure is the money a company spends to buy, upgrade, or maintain long‑term physical items such as buildings, machinery, vehicles, or major software systems that it will use for years. It matters to investors because these investments shape future earnings and use up cash today — like a bakery buying a bigger oven to bake more bread; high or sustained spending can signal growth plans but also reduces short‑term cash and affects valuation and returns.
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New multiyear agreement includes expansion to facility in Fort Collins, Colorado

CUPERTINO, Calif.--(BUSINESS WIRE)-- Apple® today announced a new multiyear commitment with Broadcom to design and produce custom silicon components and cutting-edge wireless connectivity technologies for a wide range of Apple products. The new agreement, expected to exceed $30 billion, will lead to the production of more than 15 billion U.S.-made chips and support hundreds of American jobs. Apple has been working with the administration and businesses across the U.S. to help create an end-to-end silicon supply chain in America, and today’s announcement advances those efforts.

Broadcom is part of Apple’s American Manufacturing Program (AMP), launched last year to accelerate manufacturing in the U.S. This new agreement, which marks Apple’s largest AMP commitment to date, will enable Broadcom to expand and modernize its manufacturing facilities in Fort Collins, Colorado, with a $1.5 billion capital expenditure investment. Broadcom will produce advanced radio frequency components — including FBAR filters — and advanced wireless connectivity technologies at the Fort Collins facility.

“Apple and Broadcom have a long history together, and this new phase of our partnership further accelerates our commitment to American manufacturing and innovation,” said Tim Cook, Apple’s CEO. “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 U.S.-based suppliers that share our commitment to excellence and innovation. We’re grateful to the president and his administration for supporting important projects like this one.”

“Broadcom is proud to continue to work with Apple after decades of success together, and we share a strong commitment to American innovation,” said Hock Tan, Broadcom’s president and CEO. “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.”

These investments are part of Apple’s commitment to invest $600 billion in the U.S. economy over four years, supporting manufacturing, job creation, and technology development across the country.

Apple revolutionized personal technology with the introduction of the Macintosh in 1984. Today, Apple leads the world in innovation with iPhone, iPad, Mac, AirPods, Apple Watch, and Apple Vision Pro. Apple’s six software platforms — iOS, iPadOS, macOS, watchOS, visionOS, and tvOS — provide seamless experiences across all Apple devices and empower people with breakthrough services including the App Store, Apple Music, Apple Pay, iCloud, and Apple TV. Apple’s more than 150,000 employees are dedicated to making the best products on earth and to leaving the world better than we found it.

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Nick Leahy
Apple
nleahy@apple.com

Apple Media Helpline
media.help@apple.com

Source: Apple Inc.