Dive Brief:
- Apple on Wednesday announced a new multiyear commitment with Broadcom to design and produce custom silicon components and wireless connectivity technologies for a wide range of Apple products.
- The agreement is expected to exceed $30 billion and will lead to the production of more than 15 billion U.S.-made chips and support hundreds of American jobs, Apple said in a news release.
- Apple said the agreement is part of its efforts to work with the Trump administration and U.S. businesses to “help create an end-to-end silicon supply chain in America.”
Dive Insight:
Apple’s latest commitment comes as U.S. technology companies work to bolster the domestic semiconductor supply chain in the face of increasing worldwide demand from artificial intelligence-driven data center construction and other factors.
The Broadcom deal is part of Apple’s American Manufacturing Program, launched last year to accelerate manufacturing in the U.S. The company launched the program in 2025 and said it would spend $100 billion initially as part of a larger $600 billion investment in U.S. manufacturing and innovation over four years.
The new agreement with Broadcom is Apple’s largest single American Manufacturing Program commitment to date and includes $1.5 billion to expand and modernize Broadcom’s manufacturing facilities in Fort Collins, Colorado, Apple said. Broadcom will produce advanced radio frequency components 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,” Apple CEO Tim Cook said in a statement. “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 is experiencing a period of supply constraints and increasing component costs, driven by supply-demand imbalances, according to the company’s quarterly securities filing. These constraints are expected to worsen, which could affect revenue, the filing said.
Cook told investors on an April earnings call that demand for the iPhone and Mac outpaced supply due in the second quarter. He suggested this was due to in part to constraints at TSMC’s Arizona facility, where “Apple is on track to purchase well over 100 million advanced chips.”
“The constraints were primarily driven by the availability of the advanced nodes our [systems on a chip] are produced on,” he said. Looking forward, “The majority of our supply constraints will be on several Mac models given the continued high levels of demand that we're seeing, and we have less flexibility in the supply chain than we normally would.”
In March, Apple added four semiconductor companies to its American Manufacturing Program, including Bosch, Cirrus Logic, TDK and Qnity Electronics. It said it plans to spend $400 million through 2030 in support of its new partners as they produce materials and components in the United States for Apple products sold around the world.
As part of that expansion, longtime Apple supplier TDK agreed to make iPhone sensors in the U.S. for the first time, Apple said in a March news release. The advanced sensors support camera stabilization, among other features. Apple is also working with Bosch on producing circuits that support crash detection, activity tracking and elevation.
Apple is also working with Cirrus Logic to establish new semiconductor process technologies at GlobalFoundries’ facility in Malta, New York. Apple said this collaboration will enable Cirrus Logic to develop “mixed-signal solutions” for its applications, including advanced integrated circuits for Face ID systems, Apple said in the news release.
Initial AMP members such as Amkor, GlobalWafers and Corning have started to implement their plans with Apple. The technology giant has redirected all of its iPhone and Apple Watch cover glass production to Corning’s Harrodsburg, Kentucky, facility. It also recently announced plans to bring Mac mini production to Houston later this year.
