Apple announces multi-billion dollar deal with Broadcom for US-made chips
Apple CEO Tim Cook holds the new iPhone 14 during an Apple event at its headquarters in Cupertino, California on September 7, 2022.
carlos barria | Reuters
Apple announced on Tuesday a new multi-billion dollar agreement with Broadcom develop 5G radio frequency components in the United States
“We are excited to make commitments that harness the ingenuity, creativity and spirit of innovation of American manufacturing,” Apple CEO Tim Cook said in a statement.
Broadcom shares rose about 3% on Tuesday morning. Apple shares fell less than 1%.
The 5G radio components developed by Broadcom, a leading technology and manufacturing company, will include FBAR filters and other wireless connectivity components, according to the statement. These components are different from 5G modems manufactured by Qualcomm.
Apple said its deal with Broadcom is part of its 2021 commitment to invest $430 billion in the US economy. The deal marks the latest phase of the partnership between the two companies, as Broadcom announced that it will sell $15 billion worth of wireless components to Apple in 2020.
The company said the agreement with Broadcom would also allow it to invest in “critical and advanced automation projects” with engineers and other technicians. Apple is already supporting more than 1,100 jobs at Broadcom’s Fort Collins FBAR filter manufacturing plant, according to the release.
Broadcom did not immediately respond to CNBC’s request for comment.