Apple on Tuesday said it entered a multi-billion-dollar deal with chipmaker Broadcom to use chips made in the United States.
Under the multi-year deal, Broadcom will develop 5G radio frequency components with Apple that will be designed and built in several U.S. facilities, including Fort Collins, Colorado, where Broadcom has a major factory, Apple said.
Broadcom is already a major supplier of wireless components to Apple. Broadcom reported revenue of $8.915 billion (+16 percent) for the first quarter. Broadcom is targeting revenue of $8.7 billion (+8 percent) during the current quarter.
Major chips suppliers are Qualcomm, MediaTek, Samsung, among others.
Apple said it will tap Broadcom for film bulk acoustic resonator (FBAR) chips. The FBAR chips are part of a radio-frequency system that helps iPhones and other Apple devices connected to mobile data networks.
“All of Apple’s products depend on technology engineered and built here in the United States, and we’ll deepen our investments in the U.S. economy because we have an unshakable belief in America’s future,” Apple CEO Tim Cook said in a statement.
Apple said it supports more than 1,100 jobs in Broadcom’s Fort Collins FBAR filter manufacturing facility.
Apple supports more than 2.7 million jobs through direct employment, developer jobs in the iOS app economy across the US, and spending with more than 9,000 U.S. suppliers and manufacturers across dozens of sectors.
Apple said it is spending tens of billions of dollars to develop 5G in the U.S. These investments are part of the commitment Apple made in 2021 to invest $430 billion in the U.S. economy over five years.