Billions of new semiconductors will be built in the United States.
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 multi-year 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 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 suggested the partnership to build application-specific integrated circuits—components used for artificial intelligence (AI) applications—will span 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.
Trump revealed last week that Apple will collaborate with Intel on U.S. chip manufacturing. It relied primarily on Taiwan Semiconductor Manufacturing Co. for processors, but the pivot is the latest sign that Apple is diversifying its vast global supply chain network.
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.
By Andrew Moran
