Apple has entered into a multi-year, multibillion-dollar agreement with Broadcom to manufacture semiconductor chips in the United States. The deal entails Broadcom, a technology and advanced manufacturing company, producing 5G radio frequency components and wireless components for Apple.
Apple CEO Tim Cook expressed enthusiasm for the collaboration, stating that the company is thrilled to harness the ingenuity and innovative spirit of American manufacturing. Cook emphasized that Apple’s products rely on technology engineered and built in the United States, and the company intends to deepen its investments in the US economy due to its unwavering belief in America’s future.
Following the announcement, Broadcom’s shares rose by three percent on Tuesday morning, while Apple’s shares experienced a minor decline. Apple clarified that the agreement with Broadcom is part of its 2021 commitment to invest a substantial $430 billion in the US economy.
Under the deal, Broadcom will manufacture 5G radio components, including FBAR filters and other wireless connectivity components, for Apple. These components will be distinct from the 5G modems developed by Qualcomm, as reported by CNBC.
Apple already collaborates with Broadcom for its Wi-Fi and Bluetooth components. The partnership has resulted in the creation of over 1,100 jobs at Broadcom’s Fort Collins FBAR filter manufacturing facility. The new agreement will enable further investment in critical automation projects and the upskilling of engineers and technicians.
Apple aims to diversify its semiconductor supply chain by moving away from its heavy reliance on China, citing associated risks. In December, CEO Tim Cook revealed plans to purchase chips from TSMC’s Arizona factory once it becomes operational.
Taiwan Semiconductor Manufacturing Company (TSMC), the leading foundry with over half of the global market share, will own and operate the chip plants in Arizona. TSMC is renowned for producing cutting-edge CPUs, including those used in the latest iPhones, iPads, and Macs.
TSMC’s Arizona facilities will have the capacity to manufacture state-of-the-art processing chips, such as Apple’s A- and M-series processors and Nvidia’s graphics processors, with sizes of 4-nanometer and 3-nanometer, respectively.
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