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Apple Chips In US: $30B Deal with Broadcom
8 Jul
Summary
- Apple commits $30 billion to US chip design with Broadcom.
- The deal supports domestic chip production and diversifies supply.
- It involves manufacturing 15 million Broadcom chips in the US.
Apple has entered into a substantial $30 billion agreement with Broadcom to facilitate the design and manufacturing of chips within the United States. This strategic partnership is a key component of Apple's ongoing strategy to diversify its supply chain and bolster domestic semiconductor production capabilities.
The collaboration is expected to lead to the production of 15 million Broadcom wireless connectivity chips on American soil. Broadcom will invest $1.5 billion to enhance its manufacturing facilities in Fort Collins, Colorado, as part of this initiative.
This commitment is a further extension of Apple's "American Manufacturing Program," announced in August, which aims to reinvest $600 billion into bringing more supply chain operations and advanced manufacturing back to the US.
Apple CEO Tim Cook highlighted the partnership's role in accelerating American manufacturing and innovation. This move comes as Apple faces rising costs for memory and storage chips due to the AI boom, making price increases unavoidable for consumers.
