Apple said Wednesday that it plans to spend more than $30 billion on chips produced in the United States by Broadcom, which is expected to result in more than 15 billion chips.The deal includes the design and production of custom silicon components primarily used in semiconductors, as well as wireless connectivity technologies that help devices connect to cellular, Wi-Fi, and Bluetooth networks.
Apple said the agreement is part of its pledge to invest $600 billion domestically and is part of the agreement struck with President Donald Trump to avoid tariffs on Apple products. It will also entail a $1.5 billion upgrade to Broadcom’s manufacturing facility in Fort Collins, Colorado.
“We’re grateful to the president and his administration for supporting important projects like this one,” Apple CEO Tim Cook said in a statement.EX-TESLA ENGINEER PLANS AI ROBOT TO REPLACE EUROPEAN RETIREES IN WORKFORCEBroadcom has long provided Apple with connectivity components, with their partnership dating back to 2010. Its partnership will now extend through 2031, as disclosed in a Securities and Exchange Commission filing on Monday. Broadcom is also part of Apple’s American Manufacturing Program, launched last year to accelerate manufacturing in the U.S.Trump has shown support for America’s semiconductor industry by imposing a 25% tariff on imported artificial intelligence computing chips. He also recently announced an additional partnership between Apple and tech giant Intel.
