Apple, Broadcom confirm $30 billion custom chip pact

Apple said it inked a $30 billion deal with Broadcom to design and manufacture custom chips. According to Apple, the deal will produce more than 15 billion chips manufactured in the US.

Broadcom will manufacture the chips in Fort Collins, Colorado and invest $1.5 billion in capital spending. Broadcom had previously disclosed the deal in an SEC filing.

According to Apple, Broadcom will produce advanced radio frequency components at the Fort Collins factory. Apple has pledged to invest $600 billion in the US over four years.

CEO Tim Cook said in the statement that Apple and Broadcom's pact "further accelerates our commitment to American manufacturing."

In its SEC filing, Broadcom said the Apple expansion goes through 2031. Broadcom will develop and supply "a range of custom ASIC silicon products."

Broadcom has been one of the big beneficiaries of the move to custom silicon for AI and other workloads.

• Broadcom sees Q3 revenue growth of 84%
• OpenAI, Broadcom unveil first AI inference chip