Apple writes that its collaboration with Broadcom will see the latter develop 5G radio frequency components, including film bulk acoustic resonator (FBAR) filters and cutting-edge wireless connectivity components.

The deal is part of Apple’s 2021 commitment to invest $430 billion in the US economy over five years. The FBAR filters will be designed and built in several key American manufacturing and technology hubs, including Fort Collins, Colorado, where Broadcom has a major facility. Apple says it already helps support more than 1,000 jobs at this location.

“We’re thrilled to make commitments that harness the ingenuity, creativity, and innovative spirit of American manufacturing,” said Apple CEO Tim Cook. “All of Apple’s products depend on technology engineered and built here in the United States, and we’ll continue to deepen our investments in the U.S. economy because we have an unshakable belief in America’s future.”

Apple added that the partnership would enable Broadcom to continue to invest in critical automation projects and upskilling with technicians and engineers.

Apple has recently been lessening its reliance on China to manufacture its products as Sino-American relations deteriorate. It started manufacturing some iPhone 13 handsets in India last year to diversify. The company is also building products in Vietnam and plans to source chips from TSMC’s Arizona plant once it is completed.

Apple is already Broadcom’s biggest customer, accounting for around 20% of the chip firm’s annual sales. The iPhone maker agreed to a three-year, $15 billion deal in 2020 for Broadcom to sell it wireless components. That deal was set to expire in June. Neither company said how much the new agreement was worth or how many years it would last.

Back in November, we heard that Apple’s homegrown 5G chip wouldn’t be ready for this year’s iPhone 15. Meanwhile, Qualcomm has said that it expects the first iPhones lacking its 5G modems will arrive as soon as next year.

Shares in Broadcom closed up 1.2% following news of the deal. Apple’s shares were down 1.5%, though it still has a market cap of $2.7 trillion, the largest in the world.


Please enter your comment!
Please enter your name here