Apple has agreed to buy up to $30 billion-worth of additional chips and other wireless components from Broadcom over the next few years.
The new agreement could lead to Broadcom making up to 15 billion more chips in the US, and enable it to modernize its manufacturing facilities in Fort Collins, Colorado, where it will produce radio frequency components including thin-film bulk acoustic resonator (FBAR) filters and advanced wireless connectivity technologies, Apple said.
The deal is part of Apple’s effort to create an end-to-end supply chain in the US. It has already been exploring options that could wean it off Chinese-made chips. Last year it launched its American Manufacturing Program (AMP) to accelerate manufacturing in the US, committing to “invest $600 billion in the US economy over four years” in support of local manufacturing and jobs.