Apple Strikes Major U.S. Deal With Broadcom in New Multi-Year Partnership

After months of negotiations — and just one week after Reuters reported that a deal was close, Apple announced on Wednesday that it has entered into a multi-year partnership with Broadcom worth $30 billion.

Under the agreement, Broadcom will focus on designing and manufacturing custom silicon components and advanced wireless technologies for Apple. The partnership is expected to support the production of approximately 15 billion chips in the United States.

The announcement was welcomed by officials in the U.S. administration, who said the initiative is expected to create hundreds of new American jobs.

Broadcom is a key participant in Apple's American Manufacturing Program (AMP), an initiative launched last year to strengthen domestic manufacturing. As part of the new agreement, Broadcom will invest $1.5 billion to expand and modernize its manufacturing facility in Fort Collins, Colorado.

The upgraded facility will produce advanced radio frequency (RF) components, including FBAR filters, as well as cutting-edge wireless connectivity technologies used in Apple's products.

Apple CEO Tim Cook said the two companies share a long history of collaboration and that the new agreement further strengthens Apple's commitment to American manufacturing and innovation.

"Apple and Broadcom have worked together for many years, and this next chapter in our partnership further accelerates our commitment to U.S. manufacturing and innovation," Cook said.

He added that the components produced at the Fort Collins facility are critical to the performance and wireless connectivity of Apple's devices, and thanked the president and his administration for their support of these strategic manufacturing initiatives.