Apple CEO Tim Cook announced a $30 billion deal with Broadcom to produce 15 billion custom AI chips.

Apple will purchase more than 15 billion custom silicon chips from Broadcom through 2031 under a landmark partnership worth over $30 billion. The agreement encompasses the design and production of custom ASIC components alongside advanced wireless connectivity technologies for Apple's products.

As part of the deal, Broadcom will invest $1.5 billion to expand its manufacturing facility in Fort Collins, Colorado, with all chips produced in the United States. The agreement aligns with Apple's American Manufacturing Program, which aims to expand domestic production capacity.

Custom ASICs have become central to artificial intelligence infrastructure because these specialized chips deliver superior power efficiency and performance for specific workloads compared to general-purpose GPUs. Broadcom holds a competitive edge in this market due to its design expertise and advanced manufacturing capabilities, particularly in high-speed networking silicon that connects large-scale AI accelerator clusters.

While this specific agreement focuses on wireless and connectivity components for Apple's consumer devices, it demonstrates Broadcom's proven ability to execute large-scale custom silicon programs. Wall Street analysts estimate that Apple accounts for approximately 20% of Broadcom's revenue. The long-term commitment provides substantial revenue visibility and justifies the company's manufacturing expansion investments.

The deal further diversifies Broadcom's ASIC portfolio beyond existing hyperscaler collaborations. Broadcom currently partners with Alphabet on custom Tensor Processing Units and with Meta Platforms on custom XPU platforms. This agreement signals Broadcom's deepening integration across both device-level and infrastructure-level custom silicon production within the hyperscale data center ecosystem.