Apple announced on Wednesday that it has entered into a chip deal worth over $30 billion with Broadcom.
According to the agreement, Broadcom will develop and manufacture “custom silicon components and cutting-edge wireless connectivity technologies” for Apple devices.
The news follows Broadcom filing documents with the Securities and Exchange Commission on June 6, showing it has a multiyear deal to develop custom chips for Apple through 2031.
According to Apple, over 15 billion chips will be manufactured in the US through the deal as part of the company’s American Manufacturing Program (AMP). The partnership will also see Broadcom update its Fort Collins, Colo.-based manufacturing facilities with a $1.5 billion investment.
Tim Cook, Apple’s CEO, told investors, “Apple and Broadcom have a long history together, and this new phase of our partnership further accelerates our commitment to American manufacturing and innovation. 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 U.S.-based suppliers that share our commitment to excellence and innovation. We’re grateful to the president and his administration for supporting important projects like this one.”
Hock Tan, Broadcom’s president and CEO, commented, “Broadcom is proud to continue to work with Apple after decades of success together, and we share a strong commitment to American innovation. With Apple’s newest commitment, we’re pleased to expand our manufacturing footprint in Fort Collins, where we create groundbreaking technology that connects people around the world.”
Broadcom has greatly benefited from the AI trade, with its stock rising by more than 35% this year.
Both Apple and Broadcom stocks fell less than 1% after today’s announcement.
By CEO NA Editorial Staff
