Broadcom shares rose more than 2% after Apple announced an expanded multi-year chip supply agreement with the company, deepening a long-running partnership around US-made components. Apple said the deal is expected to exceed $30 billion and will support the production of more than 15 billion chips in the US. The agreement also includes a $1.5 billion expansion of Broadcom’s facility in Fort Collins, Colorado. Apple did not say when the new capacity will come online.
The deal marks Apple’s largest US manufacturing commitment so far and comes as the iPhone maker looks to build more of its supply chain within the country. According to Reuters, Broadcom will supply radiofrequency chips, including FBAR filters, used in Apple devices for wireless communication, under agreements running through at least 2031.
