Apple is significantly ramping up its investment in American manufacturing through a new multiyear partnership with Broadcom. The iPhone maker officially announced a deal today valued at more than $30 billion US to design and manufacture custom silicon components and wireless connectivity tech right in the U.S. Yesterday, Broadcom made the announcement in an SEC […]
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Apple is significantly ramping up its investment in American manufacturing through a new multiyear partnership with Broadcom. The iPhone maker officially announced a deal today valued at more than $30 billion US to design and manufacture custom silicon components and wireless connectivity tech right in the U.S.
Yesterday, Broadcom made the announcement in an SEC filing but today Apple has officially commented on the deal.
The agreement is the largest to date under Apple’s American Manufacturing Program, which kicked off last year to build up a local supply chain. As part of the expansion, Broadcom plans to inject $1.5 billion into modernizing its existing facility in Fort Collins, Colorado. The site will focus on producing advanced radio frequency components, including FBAR filters, alongside other wireless technologies.
Apple looks to secure a stable supply of components for its hardware lineup while fulfilling its larger goal to pump $600 billion US into the American economy over a four-year stretch. The massive purchase order is expected to yield over 15 billion US-made chips and help secure hundreds of local manufacturing roles.
“Apple and Broadcom have a long history together, and this new phase of our partnership further accelerates our commitment to American manufacturing and innovation,” said Tim Cook, Apple’s CEO, in a statement on Tuesday. “The cutting-edge components built in Fort Collins are essential to delivering the incredible performance and connectivity our customers expect, and we’re proud to deepen our investments in U.S.-based suppliers that share our commitment to excellence and innovation.”
Broadcom has historically been a key partner for Apple, providing the wireless chips that keep iPhones and iPads connected to cell networks. Shares of Broadcom are up nearly 6% today.
“Broadcom is proud to continue to work with Apple after decades of success together, and we share a strong commitment to American innovation,” said Hock Tan, Broadcom’s president and CEO. “With Apple’s newest commitment, we’re pleased to expand our manufacturing footprint in Fort Collins, where we create groundbreaking technology that connects people around the world.”
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