Apple to Pay Broadcom Billions for US-Made 5G Chips
Apple has signed a multiyear, multibillion-dollar deal with Broadcom for 5G components manufactured in the US.
The agreement(Opens in a new window) will see Broadcom both develop and manufacture 5G radio frequency components for Apple, with the components produced at American manufacturing and technology hubs. Those hubs include Fort Collins, Colorado, where Apple already "supports" more than 1,100 jobs for the company.
Apple CEO Tim Cook said:
"We're thrilled to make commitments that harness the ingenuity, creativity, and innovative spirit of American manufacturing ... 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 says this deal with Broadcom forms part of the commitment it made back in 2021 to invest $430 billion in the US(Opens in a new window) over a five-year period. The agreement with Broadcom also suggests that Apple has put its own 5G chip development plans on the back burner, and that may also extend to its own Wi-Fi chip. We already knew Apple's 5G modem wouldn't be ready for iPhone 15, but we are expecting an Apple Wi-Fi chip in the iPhone 17.
Investment in US technology development and manufacturing received a major boost when President Biden signed the CHIPS Act last year. However, production on US soil has also been encouraged by the sanctions placed on China, which in turn is resulting in China also beginning to take action against US technology companies. The first of those is Micron.
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