Apple is expanding its U.S. chip manufacturing push through a new $30 billion deal with Broadcom, the iPhone maker said on July 8.
The two tech giants have worked together for years, with Broadcom supplying the company with radio-frequency components, Bluetooth, and other connectivity semiconductors.
As part of a new multiyear agreement, about 15 billion semiconductors will be produced domestically, supporting hundreds of jobs. The bolstered partnership also includes a $1.5 billion expansion of Broadcom’s Colorado facility.
“The cutting-edge components built in [Fort Collins, Colorado,] 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,” CEO Tim Cook said in a statement.
Cook also thanked President Donald Trump for his leadership.
Apple did not specify a timeline. A Securities and Exchange Commission filing by Broadcom suggests that the partnership to build application-specific integrated circuits—components used for artificial intelligence applications—will be extended through 2031.
Over the past year, Apple has advanced its American Manufacturing Program, a $600 billion initiative to bolster U.S. manufacturing over the next four years. This was in response to the president’s threat to impose a 25 percent tariff on Apple unless it shifted its iPhone manufacturing to the United States.
Apple’s campaign aims to develop its technologies domestically, create jobs, and teach new-generation skills to U.S. workers.
Capex Boom
Several semiconductor makers touted their domestic manufacturing efforts in posts commemorating America’s 250th anniversary.
In a July 4 blog post, 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.
If more chip manufacturing is reshored, the U.S. economy could benefit, as the world faces a shortage that is prompting scores of businesses to ramp up production.
Data show that the AI infrastructure buildout is bolstering growth prospects.
Business investment accounted for more than half of the first-quarter gross domestic product growth rate of 2.1 percent. It might stall in the second quarter, as the Atlanta Federal Reserve’s GDPNow Model suggests that only consumer spending will contribute to the April–June expansion.
Apple announced last month that it would hike prices on its suite of products because of rising costs of memory and storage chips.
Other companies—HP, Lenovo, Microsoft, and Sony, for example—have also been passing the costs on to consumers in recent months.
A chorus of economists does not anticipate that this will bleed into the broader economy.
The Cleveland Fed’s Inflation Nowcasting Model indicates that consumer inflation will ease in June and July.
“The outlook for inflation looks better in the second half of 2026,” Bill Adams, chief U.S. economist at Fifth Third Commercial Bank, said in an emailed note to The Epoch Times. “Price shocks from the war and tariffs look set to fade.
“Housing costs are no longer exacerbating inflation like they did three or four years ago.”
