Apple announced in a statement that it has signed a multibillion-dollar agreement with chip maker Broadcom to use chips made in the USA. Apple said that as part of the multi-year deal, Broadcom will develop 5G radio frequency components with Apple, which will be designed and manufactured at various US facilities, including Fort Collins, where Broadcom has a large factory.Apple and Broadcom collaboration
Broadcom shares rose 4.3 percent in pre-market trading after the announcement. The chipmaker is already a major supplier of wireless components to Apple. On the other hand, Apple said its agreement with Broadcom is part of its commitment to invest $430 billion in the US economy by 2021.
“We are excited to deliver on the promises that leverage the creativity, skill and innovative spirit of American manufacturing,” Apple CEO Tim Cook said in a statement. According to Apple’s press release, 5G radio components developed by Broadcom will include FBAR filters and other wireless connectivity components. These components are different from 5G modems manufactured by Qualcomm. The company said the deal with Broadcom will also allow it to invest in “critical automation projects and qualification enhancement” with engineers and other technicians.
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