Apple to produce Made in America wireless chips with Broadcom

Apple has signed a $30 billion+ multiyear deal with Broadcom to design and produce more than 15 billion U.S.-made custom wireless connectivity chips for Apple products. 

As part of the deal, Apple will put $1.5 billion in capital expenditure investment to help expand Broadcom’s manufacturing facility in Fort Collins, Colorado. The tie-up builds on Apple’s existing relationship with Broadcom, which is the iPhone-maker’s primary hardware supplier for wireless components.

The deal is part of Apple’s commitment to invest $600 billion in the U.S. economy over the next four years — a pledge made in response to mounting pressure from the Trump administration.

Last year, Trump threatened to institute new tariffs on Apple products unless the company moved core iPhone manufacturing to the U.S. Trump later reversed the policy. iPhone assembly has remained overseas.

Apple promises the commitment with Broadcom will lead to “hundreds of American jobs,” a relatively small number compared to the $30 billion price tag.