Apple has announced a multi-year agreement worth more than $30 billion with US semiconductor manufacturer Broadcom to design and manufacture advanced chips in the United States, marking one of the company’s largest investments in domestic production.
Read More: Apple eyes backing Hon Hai bid for Toshiba chip unit
According to Apple, the partnership will result in the production of more than 15 billion chips in the US and forms part of its broader commitment to invest $600 billion in the American economy over the next four years. The agreement is aimed at strengthening domestic semiconductor manufacturing and expanding Apple’s long-term supply chain within the United States.
Apple Chief Executive Tim Cook said advanced components produced in Fort Collins, Colorado, will enhance the performance and connectivity of future Apple products. He also thanked US President Donald Trump and his administration for supporting domestic manufacturing initiatives.
Broadcom Chief Executive Hock Tan said the agreement would allow the company to further expand its manufacturing capabilities in Colorado, where advanced semiconductor technologies are developed. The partnership is being described as the largest agreement under Apple’s American Manufacturing Program, which aims to strengthen local production and build a more resilient semiconductor supply chain.
The announcement comes after years of political and industry pressure on Apple over its reliance on manufacturing in China. While the new investment significantly increases chip production in the United States, it does not mean Apple is moving all of its manufacturing operations out of China. Most of the company’s consumer products, including iPhones, MacBooks and other devices, continue to be assembled by global contract manufacturers in several countries, including China and India.
Read More: Google, Amazon eye Toshiba’s chip unit: report
Apple has designed its own custom chips for more than a decade, but manufacturing of many of those processors still relies heavily on contract chipmaker Taiwan Semiconductor Manufacturing Company. Analysts say the Broadcom partnership represents a major expansion of US-based chip production rather than a complete shift of Apple’s global manufacturing footprint.