Apple said its expanded partnership with Broadcom will bring production of about 15 billion semiconductors to the United States as the company increases domestic manufacturing investments.
By yourNEWS Media Newsroom
Apple will expand U.S. semiconductor production through a new $30 billion agreement with Broadcom, the company announced July 8, marking the latest step in its broader push to shift more technology manufacturing into the United States.
The multiyear deal will produce about 15 billion semiconductors domestically and support hundreds of jobs. It also includes a $1.5 billion expansion of Broadcom’s facility in Fort Collins, Colorado.
Apple and Broadcom have worked together for years, with Broadcom supplying radio-frequency components, Bluetooth chips and other connectivity semiconductors used in Apple products. The new agreement deepens that partnership as Apple looks to strengthen its American supply chain and increase U.S.-based production of advanced components.
“The cutting-edge components built in Fort Collins are essential to delivering the incredible performance and connectivity our customers expect, and we’re proud to deepen our investments in U.S.-based suppliers that share our commitment to excellence and innovation,” Apple CEO Tim Cook said in a statement.
Cook also thanked President Donald Trump for his leadership.
Apple did not provide a specific production timeline. A Securities and Exchange Commission filing by Broadcom indicated that the partnership to build application-specific integrated circuits, components used in artificial intelligence applications, will run through 2031.
The announcement comes as Apple continues to advance its American Manufacturing Program, a $600 billion initiative aimed at expanding U.S. manufacturing over the next four years. The effort followed Trump’s threat to impose a 25% tariff on Apple unless the company moved iPhone manufacturing to the United States.
Apple’s domestic manufacturing campaign is focused on developing more of its technologies in the United States, creating jobs and training American workers in next-generation skills.
Trump said last week that Apple will also work with Intel on U.S. chip manufacturing. Apple has relied primarily on Taiwan Semiconductor Manufacturing Co. for processors, but the new U.S.-based partnerships show the company is working to diversify its global supply chain.
Other semiconductor companies have also highlighted domestic production plans. In a July 4 blog post marking America’s 250th anniversary, Nvidia said that “America is building again.”
“NVIDIA and its partners are investing in American manufacturing, supply chains, energy grids and skilled workforces so the U.S. can produce the infrastructure needed for better healthcare, breakthrough scientific discovery, stronger industrial productivity and global technology leadership,” the company said.
A larger return of chip production to the United States could support the broader economy as global semiconductor shortages push companies to increase output.
The artificial intelligence infrastructure buildout has already contributed to economic growth. Business investment accounted for more than half of the first-quarter gross domestic product growth rate of 2.1%. That contribution may slow in the second quarter, with the Atlanta Federal Reserve’s GDPNow Model suggesting consumer spending will be the only contributor to April-June growth.
At the same time, the semiconductor shortage has raised costs for consumer electronics. The so-called “RAMageddon” has driven up prices for smartphones, tablets, laptops and personal computers.
Apple said last month it would increase prices across its product lineup because of higher memory and storage chip costs.
“We’re doing our best to mitigate the huge increases that are being passed to us, and we’ve been trying to shield our customers from the increases, but the situation has become unsustainable,” Cook, who is stepping down in September, told The Wall Street Journal.
Other companies, including HP, Lenovo, Microsoft and Sony, have also passed higher costs to consumers in recent months.
Economists do not expect those increases to spread widely through the broader economy. The Cleveland Fed’s Inflation Nowcasting Model shows consumer inflation easing in June and July.
“The outlook for inflation looks better in the second half of 2026. Price shocks from the war and tariffs look set to fade,” Bill Adams, chief U.S. economist at Fifth Third Commercial Bank, said in an emailed note to The Epoch Times.
“Housing costs are no longer exacerbating inflation like they did three or four years ago.”
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