Apple Signs $30 Billion Broadcom Deal for US Chip Production
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Key Takeaways
- Apple and Broadcom signed a $30 billion agreement on July 9, 2026, to strengthen chip manufacturing in the United States.
- The deal involves the production of over 15 billion chips and is expected to create hundreds of new jobs.
- On the same day, India eliminated import tariffs on electronic components, reducing production costs for manufacturers like Apple.
- The global PC market recorded a decline of 3.6 percent in the second quarter of 2026 with 65.7 million units shipped.
- Apple is among the Magnificent Seven, the seven most valuable US technology companies, ahead of their quarterly earnings releases.
On July 9, 2026, Apple signed a $30 billion agreement with semiconductor manufacturer Broadcom to strengthen chip manufacturing in the United States. The deal involves the production of over 15 billion chips and is expected to create hundreds of new jobs.
Extensive chip production planned in the US
The agreement between Apple and Broadcom marks a substantial expansion of semiconductor production on US soil. With a value of $30 billion, the deal ranks among the larger industrial agreements in the technology sector. Broadcom, an established Apple supplier, will manufacture more than 15 billion chips under the agreement.
A semiconductor chip is an electronic component made of crystalline silicon that serves as the foundation for integrated circuits in electronic devices. Modern smartphones, computers, and other digital products rely on such chips to function.
India eliminates import tariffs on electronic components
On the same day, July 9, 2026, India abolished import tariffs on certain electronic components and smartphone parts. Previous levies of 7.5 percent and 5 percent will no longer apply. The move is expected to benefit companies like Apple and Xiaomi that operate or expand manufacturing facilities in India.
India has established itself as a manufacturing hub for the electronics industry in recent years. The elimination of import tariffs on components reduces production costs for manufacturers assembling end devices in the South Asian country.
PC market shrinks in second quarter 2026
The global PC market recorded a decline of 3.6 percent in the second quarter of 2026 compared to the prior-year quarter. According to market research firm Omdia on July 9, 2026, 65.7 million desktop computers, notebooks, and workstations were shipped worldwide. Omdia cites increasing pressure on the supply side as the reason.
Apple is represented in the PC segment with its Mac product line. Developments in the overall market provide insight into demand for computers, which is declining again after growth years during the pandemic.
Tech sector ahead of earnings season
In July 2026, market observers anticipate a shift in technology sector trends. While AI chip stocks have recently declined, the large technology stocks—including the so-called "Magnificent Seven," which also includes Apple—are coming back into sharper focus. The companies are preparing to release their quarterly earnings for the second quarter of 2026.
The "Magnificent Seven" is a term for the seven most valuable US technology companies: Apple, Microsoft, Alphabet (Google), Amazon, Meta (Facebook), Nvidia, and Tesla. These companies dominate the major US stock indices due to their market capitalization.