Apple announces multibillion-dollar deal with Broadcom for U.S.-made chips
Apple CEO Tim Cook holds the brand new iPhone 14 at an Apple occasion at their headquarters in Cupertino, California, September 7, 2022.
Carlos Barria | Reuters
Apple on Tuesday announced a brand new multibillion-dollar deal with Broadcom to develop 5G radio frequency parts within the U.S.
“We’re thrilled to make commitments that harness the ingenuity, creativity, and revolutionary spirit of American manufacturing,” Apple CEO Tim Cook mentioned in a launch.
Shares of Broadcom had been up round 3% Tuesday morning. Shares of Apple had been down lower than 1%.
The 5G radio parts developed by Broadcom, a expertise and superior manufacturing firm, will embody FBAR filters and different wi-fi connectivity parts, in keeping with the discharge. These parts are totally different from the 5G modems which might be made by Qualcomm.
Apple mentioned its deal with Broadcom is a part of its 2021 dedication to take a position $430 billion within the U.S. financial system. The deal marks the most recent part of partnership between the 2 corporations, as Broadcom announced it might promote $15 billion of wi-fi parts to Apple in 2020.
The firm mentioned the deal with Broadcom will even permit it to put money into “essential automation initiatives and upskilling” with engineers and different technicians. Apple already helps greater than 1,100 jobs in Broadcom’s Fort Collins FBAR filter manufacturing facility, in keeping with the discharge.
Broadcom didn’t instantly reply to CNBC’s request for remark.