Apple commits $30+ billion to Broadcom for US-made custom AI chips through 2031, locking in 15 billion units of domestic production.

Apple and Broadcom have announced a multi-year agreement valued at over $30 billion, under which the two companies will jointly design and produce custom chip components and cutting-edge wireless connectivity technologies for multiple Apple products. Broadcom will manufacture more than 15 billion chips in the United States and invest $1.5 billion to expand and upgrade capacity at its Fort Collins, Colorado facility.

Broadcom filed a document with the U.S. Securities and Exchange Commission disclosing that the technical collaboration will extend through 2031, with Broadcom developing and supplying a range of custom ASIC (application-specific integrated circuit) chips for multiple generations of Apple products.

As part of the agreement, Broadcom's Fort Collins facility will produce advanced radio frequency (RF) components—including thin-film bulk acoustic resonator (FBAR) filters—as well as cutting-edge wireless connectivity technologies. FBAR filters are critical RF chips enabling wireless communication in Apple devices. Apple has been collaborating with Broadcom on this technology since 2023. These components are essential for delivering the exceptional performance and connectivity expected in devices such as the iPhone and Mac.

Apple CEO Tim Cook stated: "Apple and Broadcom share a long-standing partnership, and this new phase of collaboration further demonstrates our firm commitment to U.S. manufacturing and innovation. The advanced components manufactured in Fort Collins are vital to delivering the outstanding performance and connectivity our customers expect. We are proud to deepen our investment in U.S.-based suppliers who, like us, are dedicated to excellence and innovation."

Broadcom CEO Hock Tan said the company is "honored to continue its partnership with Apple following decades of successful collaboration."

The core enhancement of this agreement lies in its expansion from traditional RF components to custom ASIC chips. ASICs are specialized chips designed for specific applications and are experiencing surging demand in fields such as AI inference and high-performance computing.

Broadcom has long been a key component supplier to Apple, providing products including custom radio frequency chips for iPhones, Wi-Fi and Bluetooth connectivity chips, and other networking semiconductors. Analysts estimate that Apple accounts for approximately 20% of Broadcom's annual revenue, making it one of Broadcom's most important customers.

The signing of this ASIC agreement aligns with prior reports regarding Apple and Broadcom's collaboration on AI server chips. Earlier reports indicated that Apple is working with Broadcom to develop an AI server processor codenamed "Baltra," expected to be manufactured using Taiwan Semiconductor's most advanced N3P process node, with mass production scheduled for 2026. The project aims to deliver customized compute chips tailored to Apple's internal AI workloads.

Bank of America Securities previously noted in a research report that Broadcom's newly added fifth AI ASIC customer "could be Apple." The signing of the new agreement officially confirms this assessment. With Apple now joining Broadcom's roster of AI ASIC clients, Broadcom has expanded its client base in the custom AI chip segment, which already includes Google, Meta, ByteDance, and OpenAI.

For Broadcom, this agreement carries significance far beyond a routine supply contract. It provides long-term revenue visibility—Apple's contribution of approximately 20% of annual revenue means the stability of this critical income stream directly impacts Broadcom's valuation. Much of Broadcom's stock appreciation in recent years has been driven by the growth of its custom AI chip business. According to its Q1 earnings report, Broadcom holds over 70% market share in the custom AI chip segment, with AI-related revenue reaching $8.4 billion, up 106% year-over-year.

The agreement also validates Broadcom's custom ASIC business model. Apple's long-term commitment demonstrates that, even amid a broader industry trend of major tech companies developing in-house chips, Broadcom's technological advantages in specific domains remain irreplaceable. Broadcom is also deepening its custom AI chip partnerships with Google and Anthropic—in April, it disclosed an agreement to develop Google's next-generation Tensor Processing Unit and will supply networking components for Anthropic's AI infrastructure through 2031.

The partnership extension through 2031 signifies Broadcom's strategic evolution in the AI era—from a "connectivity chip supplier" to a platform-level AI infrastructure powerhouse offering custom AI ASICs, networking infrastructure, and data center optical interconnect systems. For Apple, the objective is to build a more controllable, cost-efficient, and ecosystem-optimized compute foundation for Apple Intelligence, cloud-based Siri, and future AI servers.

JPMorgan forecasts that Broadcom's AI-related revenue will grow 2 to 2.5 times by 2027 and double again in 2028, positioning Broadcom as a core platform-level AI infrastructure supplier specializing in outsourced AI ASIC design, advanced packaging, SerDes, high-speed interconnects, and Ethernet cluster networking.

This agreement forms a significant component of Apple's previously announced four-year, $600 billion U.S. investment initiative. In August 2025, Tim Cook joined President Trump at the White House to unveil the "American Manufacturing Program," pledging $600 billion in investments into the U.S. economy over the next four years. The investment initiative spans research and development, chip engineering, software development, and artificial intelligence and machine learning, and is expected to create 20,000 direct jobs in the United States. Apple stated that its agreement with Broadcom represents the largest of this investment commitment.