Consumer electronics giant Apple (AAPL) is expanding its partnership with chipmaker Broadcom (AVGO) through a new multi-year deal valued at $30 billion U.S.
The expanded deal with Broadcom is Apple’s largest U.S. manufacturing commitment to date.
The new agreement will lead to the production of more than 15 billion U.S.-made microchips and includes a $1.5 billion U.S. expansion of Broadcom’s production facility in Colorado.
Broadcom has supplied Apple with connectivity components for more than a decade, but the new agreement deepens that relationship around U.S.-made microchips and processors.
Apple said Broadcom will make wireless components used to help its iPhones and other devices connect to cellular, Wi-Fi, and Bluetooth networks.
The new deal between the two companies is expected to run over the next five years, or through 2031.
Apple has pledged to invest in American manufacturing, committing to spend a total of $600 billion U.S. to expand domestic production across its supply chains.
In a news release, Apple said that the components made by Broadcom are “essential” to the performance and connectivity of its devices that also include the iPad and Apple Watch.
AAPL stock has risen 48% over the last 12 months to trade at $310.66 U.S. per share. AVGO stock has gained 36% in the past year to change hands at $370.78 U.S.
