Apple to spend $30 billion on Broadcom chips as it boosts US sourcing
By Stephen Nellis
SAN FRANCISCO, July 8 (Reuters) - Apple plans to spend more than $30 billion under a multi-year chip supply deal with Broadcom, bolstering its U.S. sourcing as President Donald Trump's administration pushes to expand domestic chip manufacturing.
Broadcom shares rose more than 4%, while Apple shares were down marginally.
Apple said on Wednesday the deal, which was struck earlier this week and runs through 2031, covers FBAR filters - or radio-frequency chips used for wireless connectivity in its devices - that it had been developing with Broadcom since at least 2023.
Broadcom will invest $1.5 billion to expand its Fort Collins, Colorado, factory under the deal, which Apple said would result in the production of at least 15 billion chips and support its work with the Trump administration to source more components domestically.
"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," Apple CEO Tim Cook said in a statement.
"We're grateful to the president and his administration for supporting important projects like this."
In August 2025, Apple raised its U.S. investment commitment to $600 billion over four years, adding $100 billion to a previously announced spending plan.
(Reporting by Stephen Nellis in San Francisco, additional reporting by Anhata Rooprai in Bengaluru; Editing by Muralikumar Anantharaman and Anil D'Silva)