Recently, Apple announced a new multi-year cooperation agreement with semiconductor manufacturer Broadcom. It is expected that Apple will purchase over 30 billion US dollars worth of American-made chips from Broadcom in the coming years, and more than 15 billion chips will be produced domestically in the United States. This is the largest single commitment under Apple's "Made in America" (AMP) initiative and the highest amount disclosed in its "Sixty Trillion Dollar Investment in the US Over Four Years" plan.

The core of the agreement: Collinsburg will expand production by 1.5 billion, and custom ASIC production will continue until 2031.

According to the agreement, Broadcom will invest 1.5 billion US dollars in capital expenditures to expand and upgrade its manufacturing plant in Collinsburg, Colorado. After the project is completed, it is expected to produce over 15 billion US-made chips. Broadcom will produce advanced radio frequency components (including FBAR filters) and wireless connection technologies at this factory, providing components such as cellular networks, Wi-Fi, Bluetooth, and GPS for Apple products; at the same time, a long-term supply agreement has been signed until 2031, and Broadcom will develop and supply custom ASIC chips for multiple generations of Apple products - this type of specialized integrated circuit has now expanded its application scenarios to the field of artificial intelligence computing power.

Broadcom has long supplied Apple with connection components. This cooperation further deepens the local layout of both parties in the field of custom chips. This cooperation is also one of the steps for Apple to build an end-to-end silicon supply chain in the United States. Previously, Apple has also established supply chain projects such as the Taiwan Semiconductor Arizona wafer factory and GlobalWafers Texas factory, aiming to reduce reliance on specific regional suppliers and align with the policy direction of the US government to promote the return of manufacturing. The related investment measures also help Apple secure the proposed tariff exemptions by the US government.

Tim Cook, Apple's CEO, stated in the statement: "Apple and Broadcom have a long history of cooperation. This new stage of cooperation further accelerates our commitment to American manufacturing and innovation. The cutting-edge components produced in Collinsburg are crucial for achieving the outstanding performance and connectivity expected by customers. We are proud to deepen our investment in American suppliers, as these suppliers share our commitment to excellence and innovation. We are grateful to the president and his government for their support of such important projects."

Hock Tan, the president and CEO of Broadcom, said: "Broadcom is honored to continue to work with Apple after achieving success in our decades-long cooperation. We are all committed to American innovation. With Apple's latest commitment, we are very pleased to expand the production scale in Collinsburg, where we create breakthrough technologies and connect people around the world."

Viewed on Apple's "Silicon Supply Chain in the US" chessboard

This agreement is the latest move by Apple to promote "supply chain localization" in the past year. In 2025, Apple announced the "Sixty Trillion Dollar Investment in the US Over Four Years" plan, and AMP is one of the manufacturing focuses in it, aiming to build a complete end-to-end silicon supply chain from design to production in the United States.

Previous actions disclosed by Apple include: purchasing chips from Taiwan Semiconductor's new factory in Arizona and wafer from GlobalWafers' factory in Texas. This time, Broadcom Collinsburg has been long-term bound until 2031, which is equivalent to fixing the "wireless connection + custom ASIC" block on the domestic production capacity in the United States.

It is reported that this investment measure is in line with the industrial policy direction of manufacturing return to the United States. Apple has largely been spared from the impact of related tariff plans. Analysts also pointed out that this is another implementation action of Cook's promotion of US manufacturing investment during his tenure. At the market level, after the announcement, Broadcom's stock price rose sharply by over 2.5% in the pre-market trading session. The US tech sector reversed its decline and rebounded on that day. Broadcom ended the day up 5% at $389.67, while Apple closed up 1.1% at $314.17. 

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