Apple is investing more than $30 billion in Broadcom's chip manufacturing in the U.S.

Apple will allocate more than $30 billion to chip development and manufacturing under a new five-year contract with Broadcom, the iPhone maker announced. The deal calls for the production of at least 15 billion radio frequency components in the U.S., including FBAR filters—communications chips that the companies have been working on since at least 2023, Reuters explained. Broadcom will invest $1.5 billion to expand its plant in Fort Collins, Colorado.

Apple's contract-related expenses are part of the company's $600 billion investment program in the U.S. economy, according to the statement.

Broadcom disclosed the agreement itself on Monday, July 6: the companies signed a contract running through 2031. Under the terms of the agreement, Broadcom is to develop and supply Apple with ASICs (application-specific integrated circuits)—specialized microchips designed to perform specific tasks. Bloomberg reported that such chips are becoming increasingly in demand in the age of artificial intelligence: unlike general-purpose processors, they are designed for specific computational tasks, which helps improve the performance and energy efficiency of AI systems.

Broadcom is one of Apple’s key suppliers. It accounts for about 20% of the chipmaker’s annual revenue, Reuters reported, citing analysts’ estimates. However, Apple is increasingly developing and manufacturing its own chips: for example, the company hopes to begin rolling out AI chips codenamed Baltra in 2027, according to Bloomberg.

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