Apple extends its custom semiconductor (ASIC) partnership with Broadcom through 2031 and speeds up expansion of the U.S. semiconductor supply chain.
Apple said on the 8th (local time) that it signed a multiyear contract worth $30 billion (about 45 trillion won) with Broadcom and plans to produce more than 15 billion chips in the United States. The deal is the largest among the agreements related to the American Manufacturing Program (AMP) that Apple launched last year.
Broadcom will invest $1.5 billion (about 2.3 trillion won) to expand production capacity at its Fort Collins, Colorado, manufacturing facility. The site produces wireless communication components used in Apple devices including the iPhone.
The chips Broadcom supplies are key components that determine wireless consolidation performance, including filter components that screen radio frequency (RF) signals. Because these parts affect call quality and the stability of sending and receiving data, it is seen as a reason Apple is continuing its partnership with Broadcom even as it expands its in-house chip development.
Apple Chief Executive Tim Cook said the company has been able to increase investment in U.S. suppliers and expressed thanks to President Donald Trump and his administration. Broadcom CEO Hock Tan also said that expanding the Fort Collins production base will help strengthen America's innovation capabilities.
Apple's decision to foreground plans to produce U.S.-made chips aligns with the Trump administration's manufacturing revival stance. President Trump previously pressured Apple, saying it could face tariff burdens if it did not move key production facilities to the United States. Cook announced a $600 billion investment plan in the United States with President Trump in Aug. last year.