Some of that money will help Broadcom build out its Colorado facility.
Apple announced it has signed a $30 billion deal with Broadcom to purchase wireless chips made in the US. In a statement, the iPhone maker said the agreement will see Broadcom design and make custom chips “for a wide range of Apple products.” Of that figure, $1.5 billion will be spent on upgrading a Broadcom facility in Fort Collins, Colorado, which will be used to produce “advanced radio frequency components.”
The companies aren’t specific as to what Broadcom will produce beyond a claim the deal will lead to the production of “15 billion US-made chips.” The statement mentions “advanced wireless connectivity technologies,” which could mean any number of things. It’s worth mentioning Broadcom does not have its own vast manufacturing resources, but outsources production to various third-party suppliers, including TSMC.
But Broadcom and Apple have a long history of working together, and Broadcom has supplied various RF, Wi-Fi and Bluetooth silicon for its devices. The release only singles out one product in specific; FBAR Filters, a proprietary Bulk Acoustic Wave filtering technology used by smartphones to filter specific wireless bands.
Last year, Apple was faced with the threat of tariffs unless it did more to use, and invest in, the domestic tech supply chain. To appease dear leader, the company pledged to invest up to $600 billion over the four years of his second term in office. The $30 billion contract with Broadcom is the single largest commitment so far, and it’s likely we’ll see plenty more blockbuster deals spaced out across the next three years.
