In a significant move, tech giant Apple has announced a new multiyear, multibillion-dollar agreement with Broadcom, a US-based technology and advanced manufacturing company. The collaboration aims to develop 5G radio frequency components, including cutting-edge wireless connectivity components and FBAR filters.
According to Apple, the development of these components will take place in key American manufacturing and technology hubs, with a particular focus on Fort Collins, Colorado, where Broadcom operates a major facility. Apple CEO Tim Cook expressed his confidence in the partnership, stating, “All of Apple’s products depend on technology engineered and built here in the US, and we’ll continue to deepen our investments in the US economy because we have an unshakable belief in America’s future.”
This collaboration not only signifies Apple’s dedication to supporting American manufacturing but also emphasizes its efforts to create jobs in the country. Currently, Apple already contributes to over 1,100 jobs at Broadcom’s Fort Collins FBAR filter manufacturing facility. The partnership will enable Broadcom to further invest in critical automation projects and upskilling opportunities for technicians and engineers. The company supports more than 2.7 million jobs across the country through its direct employment, developer jobs in the thriving iOS app economy, and spending with over 9,000 US suppliers and manufacturers across all 50 states and various sectors.
In 2021, Apple pledged to invest $430 billion in the US economy over the span of five years, and this deal with Broadcom is a significant step towards fulfilling that commitment.
The introduction of 5G technology to Apple devices in 2020 has played a crucial role in accelerating 5G adoption across the United States. While the exact size of the deal remains undisclosed, the multiyear agreement reinforces Apple’s strategy of diversifying its supply chains. The company has been expanding its manufacturing operations in countries like India and Vietnam and has also planned to source chips from a new Taiwan Semiconductor Manufacturing Co plant under construction in Arizona.
By partnering with Broadcom, Apple aims to utilize chips made in the United States, reducing its reliance on Chinese manufacturers and components. The deal signifies a deeper collaboration between the two companies, as Broadcom is already Apple’s largest customer, accounting for approximately 20 percent of the chip group’s annual sales in the previous year.