Apple and Broadcom sign over $30 billion custom ASIC agreement to produce 15 billion chips in the United States, with cooperation extended until 2031 BlockBeats News: On July 8th, Apple officially announced the details of its multi-year agreement with Broadcom on Wednesday, with an expected total amount of over $30 billion. The two parties will jointly design and produce customized ASIC chip components and cutting-edge wireless connectivity technologies for multiple Apple products. According to the agreement, Broadcom will produce over 15 billion chips in the United States and invest $1.5 billion to expand its manufacturing plant in Fort Collins, Colorado, which mainly produces FBAR filters and advanced RF components - the core chips for wireless communication in devices such as iPhone and Mac. Apple has been working with Broadcom to develop this technology since 2023. Apple CEO Cook emphasized in a statement that this move "further demonstrates a firm commitment to American manufacturing and innovation"; Broadcom CEO Chen Fuyang expressed that he is honored to continue deepening the relationship after decades of successful cooperation. This agreement is the largest collaboration project to date in Apple's previously announced four-year $600 billion US investment plan. The strategic upgrade of this agreement lies in the comprehensive expansion from traditional RF components to customized ASIC chips, which is highly consistent with previous reports about Apple's cooperation with Broadcom to develop the AI server processor code named "Baltra". The chip is expected to be mass-produced using TSMC's N3P process in 2026, aiming to create customized computing power for Apple's internal AI workloads. For Broadcom, Apple contributes approximately 20% of annual revenue, and this renewal provides long-term revenue visibility and validates the irreplaceability of its custom ASIC business model. Broadcom has expanded its AI ASIC customer base to include Google Meta、 Head technology companies such as ByteDance and OpenAI had AI related revenue of $8.4 billion in the first quarter, up 106% year on year. JPMorgan expects Broadcom's AI revenue to increase by 2 to 2.5 times in 2027 and double again in 2028. It is worth noting that the signing of this agreement coincides with the eve of Cook's resignation - Cook will be appointed as Executive Chairman on September 1, and Senior Vice President of Hardware Engineering, Tenus, will take over as CEO. The new agreement means that Apple is expected to have difficulty fully transitioning to self-developed cellular baseband before 2031, and the timeline for self-developed alternatives is longer than expected by the outside world.