Apple to spend $30 billion on broadcom chip deal, backing Colorado factory expansion

As part of a chip supply agreement, Apple now plans to spend more than $30 billion with Broadcom. The deal will see the chipmaker expand its manufacturing facility in Colorado. Earlier this week, on Monday, Broadcom secured a long-term supply agreement with the iPhone maker that runs through 2031.

Apple recently confirmed that the agreement covers FBAR (Film Bulk Acoustic Resonator) filters, a type of radio-frequency chip that enables wireless communication in Apple devices. The company said it has been working with Broadcom to develop the technology since at least 2023.

As part of the agreement, Broadcom is expected to invest $1.5 billion to expand its manufacturing facility in Fort Collins, Colorado. Apple said the deal will result in the production of at least 15 billion chips and forms part of its broader effort, in collaboration with the Donald Trump administration, to source more of its chips from within the United States.

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"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," Apple CEO Tim Cook said in a statement.

The move underscores Apple's commitment to supporting American chip manufacturing while also advancing its efforts to diversify its supply chain beyond the Taiwanese chipmakers it currently relies on to produce the processors that power its iPhones, iPads, and Mac computers.

US President Donald Trump also announced a $9 billion agreement under which Apple will purchase American-made chips from Intel. The deal comes after the federal government invested $8.9 billion in Intel as part of its efforts to strengthen domestic semiconductor manufacturing.