SAN FRANCISCO, July 8 (Reuters) - Apple plans to spend more than $30 billion as part of a chip-supply agreement reached earlier this week with Broadcom that will also see the chipmaker expand a factory in Colorado, the companies said on Wednesday.
Broadcom disclosed on Monday it had secured a long-term supply deal through 2031 with the iPhone maker. On Wednesday, Apple said the deal will involve a radiofrequency chip called FBAR filters that will help Apple devices communicate wirelessly and which Apple has been working with Broadcom to develop since at least 2023.
As part of the deal, Broadcom will spend $1.5 billion to expand a factory in Fort Collins, Colorado. Apple said that the deal, which will result in the production of at least 15 billion chips, is part of its work with U.S. President Donald Trump's administration to source more of its chips from the U.S.
"The cutting-edge components built in Fort Collins are essential to delivering the incredible performance and connectivity our customers expect, and we’re proud to deepen our investments in U.S.-based suppliers that share our commitment to excellence and innovation," Apple CEO Tim Cook said in a statement.
"We’re grateful to the president and his administration for supporting important projects like this."
Reporting by Stephen Nellis in San Francisco; Editing by Muralikumar Anantharaman
Source: Reuters