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Apple has confirmed a new, multi-billion dollar agreement with semiconductor company Broadcom. For over $30 billion, more than 15 billion chips will be manufactured in the US – wireless components found in almost every Apple device. This is Apple's largest single commitment to date in its own US manufacturing program.
The news concerns wireless components for iPhones, iPads, and other devices, which are slated to be manufactured in even greater quantities in the US in the future. This announcement comes amid two significant developments in Apple's chip policy this week: First, the company sought political support in Munich for its largest development site in Europe, and now it has pledged to increase production across the Atlantic – both accompanied by decidedly warm words directed at the relevant government.
What the new Broadcom agreement includes
The multi-year agreement is expected to be worth over $30 billion and lead to the production of more than 15 billion chips manufactured in the US. Broadcom is part of the American Manufacturing Program launched last year, through which Apple aims to accelerate domestic manufacturing – and according to Apple, this new agreement is the largest commitment to date within the program.
At the heart of the project is the Fort Collins site in Colorado, which Broadcom is expanding and modernizing with a $1.5 billion investment. The site will produce advanced high-frequency components, including FBAR filters, as well as other components for wireless connectivity. This partnership is not new: Back in 2023, the two companies signed a multi-billion dollar agreement for the production of 5G radio components in Fort Collins, an agreement that the current commitment significantly expands.
What FBAR filters are used for on the iPhone
Behind the cumbersome abbreviation lies a component that is crucial for the reception of every smartphone. FBAR filters (Film Bulk Acoustic Resonators) are located in the signal path between the antenna and the mobile network modem. Their task: to cleanly separate the many different frequency bands and filter out interference signals so that the device can reliably connect to the densely populated networks.
With the leap to 5G, this task has become more demanding – where 4G managed with around a thousand frequency band combinations, 5G requires over ten thousand. Broadcom has been one of the leading providers in this field for years and also supplies Apple with components for Wi-Fi and Bluetooth. This is remarkable given that Apple has recently been increasingly relying on its own radio chips: With its in-house developed C-modem, the company is gradually replacing purchased components. However, highly specialized RF filters remain an exception for now – here, the path continues to lead through Broadcom.
Part of a $600 billion commitment
Apple sees the agreement as part of its commitment to invest $600 billion in the US economy over four years – in manufacturing, jobs, and technology development across the country. The new agreement is expected to support several hundred US jobs and is part of Apple's stated goal of establishing a fully integrated semiconductor supply chain within the US.
The timing is no coincidence. The commitment comes at a time when the US government is emphasizing the need to bring chip manufacturing back to the country. Tim Cook frames the move accordingly as a commitment to the US location and explicitly thanks the president and his administration in the announcement – a tone that has been consistent with Apple's recent manufacturing announcements. Broadcom CEO Hock Tan, for his part, points to the decades-long collaboration between the two companies.
Apple's chip strategy across two continents
Taken together, this week demonstrates the breadth of Apple's semiconductor foundation. The company is consolidating the development of its own chips in hubs like Munich and Cupertino, while manufacturing is increasingly shifting to the US – from processors to wireless components from Colorado. At the same time, Apple is cultivating political relationships wherever these investments are made: in Bavaria as well as in Washington. For the products themselves, little will change initially – but the map on which Apple's chips are created is currently being redrawn. (Image: Shutterstock / asharkyu)
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