Apple Commits More Than $30 Billion to Broadcom in Largest U.S. Manufacturing Deal to Date

Apple has entered into a multi-year agreement with chipmaker Broadcom valued at more than $30 billion, marking the iPhone maker's largest domestic manufacturing commitment under its American Manufacturing Program, the company said Wednesday.

The deal is expected to yield more than 15 billion U.S.-made chips and includes a $1.5 billion expansion of Broadcom's facility in Fort Collins, Colorado. Apple did not provide a timeline for when the added capacity will come online.

Broadcom, which has long supplied Apple with connectivity components, disclosed in a Securities and Exchange Commission filing Monday that it had entered into new long-term agreements with Apple to develop and supply "custom ASIC silicon products" for multiple generations of Apple products through 2031. ASICs — application-specific integrated circuits — are increasingly being deployed for artificial intelligence workloads.

Apple said Broadcom will manufacture wireless components used to connect devices to cellular, Wi-Fi, and Bluetooth networks, deepening a relationship that had previously centered on off-the-shelf connectivity parts.

The agreement is the largest piece of Apple's $600 billion, four-year U.S. investment plan announced in 2025, and falls under its American Manufacturing Program, which was established to broaden domestic production across the company's supply chain.

"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," Apple said in a statement.

Outgoing Apple CEO Tim Cook said the components built in Fort Collins are "essential" to the performance and connectivity Apple customers expect, and thanked President Donald Trump and his administration for supporting the project. Broadcom CEO Hock Tan said Apple's commitment will help the chipmaker expand its manufacturing footprint in Fort Collins.

Shares of Broadcom climbed more than 6% following the announcement Wednesday — their sharpest single-session rally since February — as chip stocks more broadly bounced after a week of heavy selling pressure.

That broader market backdrop added a notable dimension to the announcement. The iShares MSCI USA Momentum Factor ETF, which tracks stocks aligned with recent trends, had fallen just over 10% from its June 22 high close to its Wednesday open, entering formal correction territory, before recovering modestly in early trading. Goldman Sachs and Deutsche Bank traders noted that some high-momentum benchmarks they tracked had fallen more than 20% in recent days.

Wall Street trading desks attributed the declines largely to profit-taking and an unwinding of momentum-driven positions rather than deteriorating fundamentals. "While momentum is clearly getting wrung out, the broader AI infrastructure narrative doesn't look like it's cracking," UBS traders wrote in a note Wednesday. "It feels much more like an orderly de-risking exercise than a forced liquidation event."

JPMorgan traders said Wednesday they believed a buying opportunity had emerged. "Was yesterday the bottom? We think you buy the dip," they wrote, adding that the momentum unwind may have run its course.

Jordi Visser at 22V Research described the chip stock pullback as an "AI capex air pocket" in a Tuesday research note, saying such pockets can occur "if the physical infrastructure curve runs ahead of the application monetization curve."

The Apple-Broadcom announcement arrives at a juncture when the domestic chip supply chain has become a priority for both the technology industry and the federal government, reinforcing the strategic weight of large-scale U.S. manufacturing commitments ahead of what is expected to be a closely watched earnings season for semiconductor companies.

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