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Apple Announces Broadcom Chip Deal Worth More Than $30 Billion

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Apple Announces Broadcom Chip Deal Worth More Than $30 Billion

Apple (AAPL) said Wednesday that Broadcom (AVGO) will produce chips to be used in the iPhone maker' products in a deal likely worth more than $30 billion.

Earlier in the week, Broadcom announced an expanded collaboration to develop custom microchips for Apple, but didn't disclose the financial terms.

Broadcom will manufacture more than 15 billion chips in the US, Apple said. The deal will allow Broadcom to invest $1.5 billion to expand its manufacturing facilities in Fort Collins, Colorado.

"Apple and Broadcom have a long history together, and this new phase of our partnership further accelerates our commitment to American manufacturing and innovation," Apple Chief Executive Tim Cook said in a statement.

Shares of Apple edged down 0.4% in Wednesday trade, while Broadcom rose 1.9%.

"With Apple's newest commitment, we're pleased to expand our manufacturing footprint in Fort Collins," Broadcom CEO Hock Tan said.

In 2025, Apple boosted its US-centric capital expenditure plan to $600 billion over a four-year period.

Last month, President Donald Trump announced that Apple had agreed to work with Intel (INTC) to design and build chips in the US.

In April, Broadcom announced its expanded collaboration with Meta Platforms (META) to support the Facebook parent's artificial intelligence compute infrastructure. The same month, the chipmaker clinched a deal to produce AI chips for Alphabet's (GOOG, GOOGL) Google and expanded its collaboration with Amazon-backed (AMZN) AI startup Anthropic.

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