Apple has announced a multi-year chip supply agreement worth more than $30 billion with Broadcom. The agreement — which runs through 2031 — strengthens Apple’s long-term partnership with Broadcom and is the largest commitment made under Apple’s American Manufacturing Program (AMP). The investment is also part of Apple’s broader plan to invest $600 billion in the US economy over 4 years, with a focus on advanced manufacturing, research, engineering and semiconductor production.
The partnership covers the design and production of custom silicon components and advanced wireless connectivity technologies used in Apple products. A major focus is on Film Bulk Acoustic Resonator (FBAR) filters, specialized radio-frequency chips that help devices send and receive wireless signals efficiently. These components are essential for technologies like 5G, Wi-Fi, Bluetooth and GPS, allowing Apple devices to support multiple wireless frequency bands while reducing interference and improving signal quality.
Notably, FBAR filters are used across Apple’s product lineup, including the iPhone, iPad, Mac and Apple Watch, where they help deliver faster connectivity, better battery efficiency and improved network performance. Apple said it has been working with Broadcom on these technologies since at least 2023, showing that the latest deal builds on years of joint development rather than starting a new partnership.
As part of the agreement, Broadcom will invest $1.5 billion to expand and modernize its manufacturing facility in Fort Collins, Colorado. The upgraded plant will produce more than 15 billion chips during the life of the agreement and is expected to support hundreds of American jobs in manufacturing, engineering and related industries. The facility will manufacture advanced radio-frequency components along with other wireless connectivity technologies that will be used in future Apple devices.
The agreement is strategically important for both companies. Apple has increasingly developed its own chips, including its A-series processors, M-series chips and its first in-house cellular modem, but it still depends on Broadcom for highly specialized wireless communication chips and networking technologies. Earlier this week, Broadcom confirmed that its long-term supply agreement with Apple had been extended through 2031, easing concerns that Apple might eventually replace Broadcom with entirely in-house solutions. Meanwhile, Estimates suggest that Apple accounts for around 20% of Broadcom’s annual revenue, making it one of the chipmaker’s most valuable customers.