Get all your news in one place.
100's of premium titles.
One app.
Start reading
International Business Times
International Business Times
Business
Matias Civita

Apple Commits Its Biggest U.S. Manufacturing Push Yet: What It Entails

As part of the agreement, Broadcom will invest $1.5 billion to expand its semiconductor facility in Fort Collins, Colorado, where it will manufacture advanced wireless components for future Apple devices. (Credit: Eric Thayer/Getty Images)

Apple is deepening its investment in American chip manufacturing with a new multi-year agreement worth more than $30 billion with Broadcom, marking the largest U.S. manufacturing commitment in the company's history.

The deal, announced Wednesday, will result in the production of more than 15 billion chips in the United States over the coming years. As part of the agreement, Broadcom will invest $1.5 billion to expand its semiconductor facility in Fort Collins, Colorado, where it will manufacture advanced wireless components for future Apple devices.

The announcement represents the largest commitment under Apple's American Manufacturing Program (AMP), a broader initiative aimed at strengthening domestic production and reducing reliance on overseas suppliers. It also forms a major piece of Apple's previously announced $600 billion, four-year U.S. investment plan unveiled in 2025.

Apple said the expanded partnership focuses on developing custom silicon designed and manufactured in the United States. Broadcom will produce wireless connectivity components that enable Apple products to connect to networks.

The companies have worked together for years on connectivity technologies, but the new agreement significantly broadens their collaboration by emphasizing U.S.-based manufacturing and custom chip development.

In a filing with the Securities and Exchange Commission earlier this week, Broadcom disclosed that it had signed new long-term agreements with Apple to develop and supply custom application-specific integrated circuit (ASIC) products through 2031. ASICs are specialized chips built for dedicated tasks and have become increasingly important in artificial intelligence, where they can deliver greater efficiency than general-purpose processors.

Apple did not specify when the expanded production capacity in Colorado will become operational, but said the investment will help establish a stronger end-to-end semiconductor ecosystem in the United States. "Apple has been working with the Administration and businesses across the U.S. to help create an end-to-end silicon supply chain in America, and today's announcement advances those efforts," the company said in a statement.

Outgoing Apple CEO Tim Cook described the components produced in Fort Collins as essential to the user experience across Apple's ecosystem. "The components manufactured in Fort Collins are essential to the performance and connectivity Apple customers expect," Cook said. He also thanked President Donald Trump and his administration for supporting efforts to expand advanced manufacturing in the United States.

The announcement aligns with the Trump administration's push to encourage companies to manufacture more advanced technology domestically. Since returning to office, Trump has repeatedly emphasized rebuilding American manufacturing and expanding semiconductor production as part of a broader strategy to strengthen supply chain resilience and reduce dependence on foreign chipmakers.

Broadcom CEO Hock Tan said Apple's long-term commitment provides the company with confidence to expand its U.S. manufacturing footprint."Apple's commitment will help Broadcom expand its manufacturing footprint in Fort Collins," Tan said in a statement accompanying the announcement.

The semiconductor industry has become a strategic priority for both government and technology companies following years of global supply chain disruptions and growing geopolitical tensions surrounding chip production. Most advanced semiconductor manufacturing remains concentrated in Asia, prompting companies including Apple to diversify production and invest more heavily in U.S.-based facilities.

For Apple, the Broadcom agreement builds on a series of domestic manufacturing initiatives announced over the past several years, including investments in semiconductor design, supplier expansion and advanced manufacturing projects across multiple states.

Sign up to read this article
Read news from 100's of titles, curated specifically for you.
Already a member? Sign in here
Related Stories
Top stories on inkl right now
One subscription that gives you access to news from hundreds of sites
Already a member? Sign in here
Our Picks
Fourteen days free
Download the app
One app. One membership.
100+ trusted global sources.