Apple commits $30 billion to Broadcom for Baltra ASIC and wireless/RF components, largest segment of $600 billion US manufacturing bet.
Apple has entered into a multi-year agreement with Broadcom valued at over $30 billion through 2031, focusing on the development of the secretive Baltra ASIC—Apple's homegrown artificial intelligence server chip—alongside advanced radio frequency and wireless components. The deal represents the largest commitment yet under Apple's $600 billion American Manufacturing Program (AMP).
Apple's AMP, launched over the coming four years, was a key factor in the Trump administration's decision to exempt the company from certain tariffs in 2025. The program is steadily advancing toward its targets. In March 2026, Apple's server manufacturing facility in Houston reached a threshold of 10 servers per hour; the company also plans to manufacture Mac mini devices at the same location. That same month, Apple enlisted Bosch, Cirrus Logic, TDK, and Qnity Electronics to support the initiative.
The Broadcom partnership will secure Apple preferential access to advanced wireless and RF components for its baseband chips—the C1, C1X, and C2—which enable cellular, Wi-Fi, and Bluetooth connectivity across Apple's devices. Speculation had previously pointed to the deal's connection to the Baltra project, which Apple has now officially confirmed.
Apple's CEO Tim Cook stated: "We're proud to expand our work with Broadcom with a new agreement to produce billions more chips in the US. It's our largest ever American Manufacturing Program commitment and an important step in our work to build an end-to-end silicon supply chain in the US."
The partnership is valued at $30 billion and will extend through 2031, producing more than 15 billion U.S.-manufactured chips while supporting hundreds of American jobs. Apple has also committed $1.5 billion to help Broadcom expand its Colorado-based facilities.
Speculation since 2024 has surrounded Apple's work on its first artificial intelligence server chip. Initial reports suggested the Baltra chip would utilize TSMC's 3nm N3E process, with design work expected to conclude within twelve months. According to the Information, the chip could employ a chiplet architecture, with each chiplet designed for specific functions. Broadcom would potentially assist in managing inter-chiplet communication within Apple Intelligence servers, allowing Apple to maintain the overall ASIC design's confidentiality from its partners.
Foxconn has been assigned to manufacture the servers themselves, with design assistance from Lenovo and its subsidiary.
The $30 billion commitment also encompasses chips intended for other Apple products. The company plans to outsource certain iPhone and Mac chips to Intel, leveraging its 18A-P process for base M7 chips expected in 2027. Apple's 2028-launching A22 chip is anticipated to be fabricated on either Intel's 18A-P or the more advanced 14A process, with approximately 80 percent of Apple's planned Intel orders earmarked for this iPhone-bound processor.