Apple Announces $30B Chip Deal with Broadcom, Boosts AI Chip Revenue

Apple has committed over $30 billion to Broadcom for chip production by 2031. The deal includes a projection of producing 15 billion chips and reduces customer concentration risk for Broadcom. Meanwhile, Broadcom's AI chip segment is experiencing significant growth, with a 143% year-over-year revenue increase and projected 200%+ growth in the upcoming quarter.

AAPL committed more than $30 billion to AVGO for U.S.-made custom silicon through 2031, Apple's largest deal to date under its American Manufacturing Program . The agreement covers production of more than 15 billion chips, including advanced radio-frequency components and FBAR filters.

For Broadcom, the multiyear pact locks in long-term revenue visibility: Apple accounts for roughly 20% of Broadcom's annual revenue, and the extension deepens the relationship into higher-value custom ASICs tied to AI infrastructure. Broadcom plans about $1.5 billion of capital spending to expand its Fort Collins, Colorado facilities.

The deal is part of Apple's broader pledge to invest $600 billion in the U.S. over four years. Investors will watch execution on domestic capacity and whether the ASIC expansion meaningfully diversifies Broadcom beyond its wireless and networking base.

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