Apple to Invest 45 Trillion Won in U.S. Semiconductors, Signs Long-Term Deal with Broadcom

[Financial News New York = Reporter Lee Byung-chul] Apple has signed a long-term supply deal worth more than $30 billion, or about 45 trillion won, with U.S. semiconductor company Broadcom Inc., moving to expand semiconductor production in the United States.
Apple said on the 8th, local time, that it had signed a multiyear deal worth more than $30 billion with Broadcom Inc. It is the largest manufacturing investment in the United States that Apple has announced so far. Under the agreement, more than 1.5 billion semiconductors produced in the United States will be supplied. Broadcom Inc. will invest an additional $1.5 billion in its production facility in Fort Collins, State of Colorado, to expand capacity. Apple did not disclose when the new production line will begin operations.
Broadcom Inc.'s shares jumped more than 6% immediately after the announcement, marking their biggest gain since February.
Broadcom Inc. has supplied Apple with communications semiconductors used for Wi-Fi, Bluetooth and cellular connectivity in products such as the iPhone and iPad. The new deal expands the partnership to custom semiconductors made in the United States. Apple said Broadcom Inc. plans to produce wireless communications semiconductors in the United States that handle cellular, Wi-Fi and Bluetooth connections.
Broadcom Inc. previously disclosed in a filing with the United States Securities and Exchange Commission (SEC) that it had signed a long-term contract to jointly develop and supply application-specific integrated circuits, or ASICs, for multiple generations of Apple products through 2031. ASICs are semiconductors designed for specific purposes, and their use has been rising rapidly in generative AI and AI computing for data centers.
The deal is the largest project in Apple's four-year, $600 billion investment plan in the United States announced last year. It is also a key part of the company's 'American Manufacturing Program,' which aims to shift the supply chain to the United States.
Tim Cook, Apple Chief Executive Officer, said, "The semiconductors produced in Fort Collins are essential components for delivering the performance and connectivity our customers expect," adding, "We thank President Donald Trump and his administration for supporting this project."



[email protected] Reporter Lee Byung-chul Reporter