Apple Strikes Multi-Billion Dollar Deal with Broadcom for US-Made Semiconductors
Tech giant Apple has announced a significant multi-billion dollar agreement with chipmaker Broadcom to incorporate more domestically manufactured components in its devices.
As part of the multi-year partnership, the two US companies will collaborate on the development of 5G device components to be designed and produced within America. This deal aligns with Apple’s 2021 commitment to invest $430 billion in the US economy.
The collaboration comes amidst a trade dispute centered on the technology industry, intensifying tensions between Washington and Beijing.
The ongoing conflict has witnessed the US implementing a series of measures against China’s chip manufacturing sector while also making substantial investments to bolster its domestic semiconductor industry.
In recent times, major US tech companies have faced increased scrutiny from lawmakers on both sides of the political spectrum regarding their reliance on Chinese manufacturers and components. Apple has been actively diversifying its supply chains, with an increasing number of its devices being manufactured in countries like India and Vietnam.
Last year, Apple disclosed its intention to procure semiconductors from a factory being constructed in Arizona by Taiwanese chipmaking giant TSMC.
Additionally, in 2022, Apple revealed plans to produce the iPhone 14 in India, marking a significant milestone in the company’s strategy to expand manufacturing beyond China. This move expanded Apple’s existing manufacturing operations in India, where it has been producing iPhones since 2017.
Moreover, Apple recently inaugurated its first retail stores in India, located in Mumbai and Delhi.
Under this latest deal, which further solidifies Apple’s collaboration with Broadcom, components for Apple devices will be designed and manufactured in various locations across the United States, including Colorado.
Apple’s CEO, Tim Cook, expressed enthusiasm for commitments that harness American manufacturing’s ingenuity, creativity, and innovative spirit.
Tensions between the US and China have been escalating in recent months. China recently declared that products from US memory chip giant Micron Technology pose a national security risk, marking Beijing’s first major action against a US chip manufacturer.
The country’s cyberspace regulator revealed concerns about “serious network security risks” associated with America’s leading memory chip producer.