Apple today announced a new multiyear agreement 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 lead to the production of more than 15 billion U.S.-made chips. Apple says the deal will also support hundreds of American jobs.
Fort Collins Expansion
Broadcom is part of Apple's American Manufacturing Program, which Apple launched last year to accelerate manufacturing in the United States. Apple says the new Broadcom agreement is its largest AMP commitment to date.
As part of the deal, Broadcom will expand and modernize its manufacturing facilities in Fort Collins, Colorado, with a $1.5 billion capital expenditure investment. The facility will produce advanced radio frequency components, including FBAR filters, as well as advanced wireless connectivity technologies.
Apple CEO Tim Cook said the Fort Collins components are important to the performance and connectivity of Apple products, while Broadcom CEO Hock Tan said the company will expand its manufacturing footprint at the Colorado facility.
Part of Apple's U.S. Investment Plan
Apple says the Broadcom agreement is part of its commitment to invest $600 billion in the U.S. economy over four years, supporting manufacturing, job creation, and technology development.