Apple, Broadcom extend chip deal to $30 billion through 2031

Apple deepened its reliance on Broadcom for wireless chips in a deal valued at more than $30 billion, the iPhone maker's largest US manufacturing commitment.

Apple agreed to expand its chip partnership with Broadcom through 2031 in a deal exceeding $30 billion, securing custom wireless components for iPhones while deepening the US supply chain.

"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 Chief Executive Officer Tim Cook said in a statement.

The agreement calls for Broadcom to produce more than 15 billion US-made chips and invest $1.5 billion to expand its Fort Collins, Colorado, facility, where it will manufacture advanced radio frequency components and wireless connectivity products. Apple accounts for about 20 percent of Broadcom's annual revenue, making the iPhone maker the chip supplier's largest customer, according to analysts.

The deal marks the largest commitment under Apple's American Manufacturing Program, part of a $600 billion, four-year US investment plan announced in 2025. It reinforces Apple's strategy of locking in long-term supply agreements with key chipmakers as it increasingly designs its own processors and cellular modems while still relying on Broadcom for wireless connectivity and radio frequency components.

Broadcom disclosed in a Securities and Exchange Commission filing that the new long-term agreements cover the development and supply of custom application-specific integrated circuits, or ASICs, for multiple generations of Apple products. The chips are increasingly used for artificial intelligence workloads, where the boom in inference — the process by which AI models respond to user queries — has made custom silicon crucial for performance and power efficiency.

The Fort Collins expansion will modernize Broadcom's manufacturing facilities and add capacity for advanced RF components, which manage cellular, Wi-Fi and Bluetooth connectivity in Apple devices. Broadcom Chief Executive Officer Hock Tan said Apple's commitment will help the chipmaker expand its manufacturing footprint in Colorado, calling the investment a vote of confidence in US semiconductor production.

Apple launched its American Manufacturing Program in 2025 to increase domestic production across its supply chain. Other participants include Corning, which makes Gorilla Glass, GlobalFoundries, a US-based foundry, and Texas Instruments, which supplies analog chips. The Trump administration has made reshoring chip development a cornerstone of its industrial policy, taking a 10 percent stake in Intel as part of broader efforts to rebuild US semiconductor capacity after decades of offshore production.

Broadcom has been a major beneficiary of the AI infrastructure buildout, with its stock rising more than 35 percent over the past year, partly driven by custom chip work for companies such as Google. Apple shares have gained 47 percent in the same period, supported by resilient iPhone sales and the company's push into AI with an updated version of Siri unveiled at its Worldwide Developers Conference in June.

The extended partnership comes as Apple increasingly designs its own processors, including the A-series and M-series chips, and recently introduced the C1 cellular modem to reduce dependence on Qualcomm. Yet the company continues to rely on Broadcom for wireless connectivity and radio frequency components, areas where the chipmaker holds deep expertise developed over decades of supplying the iPhone.

For Broadcom, the deal locks in a massive revenue stream through the end of the decade, reducing uncertainty around its largest customer relationship at a time when the company is diversifying into AI custom chips for other hyperscalers. For Apple, the agreement secures supply of critical components as it executes its US manufacturing strategy. The partnership shows the growing importance of custom silicon in an era where AI workloads demand specialized hardware, positioning both companies to benefit from the structural shift toward purpose-built chips.

This article is for informational purposes only and does not constitute investment advice.