Apple announces chip deal with Broadcom worth more than $30 billion

Apple (AAPL) on Wednesday announced it has entered into a chip deal valued at more than $30 billion with Broadcom (AVGO). 

Under the terms of the deal, Broadcom will design and produce "custom silicon components and cutting-edge wireless connectivity technologies" for Apple products.

The news comes after Broadcom filed paperwork with the Securities and Exchange Commission on June 6, indicating it established a multiyear agreement to develop custom chips for Apple through 2031.

According to Apple, more than 15 billion chips will be built in the US via the deal as part of the company's American Manufacturing Program (AMP). The tie-up will also see Broadcom modernize its Fort Collins, Colo.-based manufacturing facilities via a $1.5 billion investment.

"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 US-based suppliers that share our commitment to excellence and innovation," he said.

Apple launched its AMP initiative in 2025 as part of the company's push to increase its manufacturing presence in the US, along with its partners. Other companies that participate in Apple's AMP effort include Corning (CLW), GlobalFoundries (GFS), and Texas Instruments (TXN).

The Trump administration made reshoring manufacturing and chip development a cornerstone of its industrial and technology policies. 

The White House has taken a 10% stake in Intel, and according to the Financial Times, OpenAI (OPAI.PVT) has proposed giving the administration a 5% position in the AI company.

Broadcom has been a major beneficiary of the AI trade, with the stock rising more than 35% thanks to its work developing chips for companies such as Google (GOOG, GOOGL).

Apple, meanwhile, has gone through a series of ups and downs related to its positioning in the AI market. More recently, the tech giant debuted an updated version of Siri during its WWDC event in June.

Importantly, the company's iPhone sales have continued to outperform, helping to lift its stock price 47% over the past year.

Email Daniel Howley at dhowley@yahoofinance.com. Follow him on X at @DanielHowley.

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