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Apple Partners With Broadcom to Build 5G Components in the US

Andrew Burton/Getty Images

Andrew Burton/Getty Images

In a move that supports the US economy and further strengthens its technological competitive edge, Apple Inc has struck a multi-billion-dollar deal with semiconductor manufacturer Broadcom Inc. to build 5G RF components in the US. These components, which would be used in Apple devices, will be designed and manufactured at Broadcom’s Fort Collins facility in Colorado.

The agreement is the latest step in Apple’s long-running effort to ramp up its 5G technology capabilities and competitive edge. It also shows Apple’s commitment to investing in the US economy: 1,100 jobs at Broadcom’s FBAR chip manufacturing plant will be maintained and added to with the introduction of 5G components.

Broadcom shares saw a 1.5% increase at the open of the New York Stock Exchange, an indicator of industry confidence in the agreement. The chipmaker is already one of Apple’s leading suppliers of wireless components.

The move is strategic for both companies. Apple CEO Tim Cook explained in a statement that the US is “the birthplace of much of the world’s technology,” and plays a critical role in the tech industry. “All Apple products depend on technology designed and made right here in the United States” Cook added, “and we will continue to deepen our investments in the American economy because we believe strongly in America’s future.”

The FBAR chips, part of a radio frequency system, will be essential to Apple’s upcoming lineup of iPhones and other devices, as they enable iPhones and other Apple devices to connect to mobile data networks. Furthermore, Broadcom’s Fort Collins facility is highly experienced in the production of these RF components, which further indicates the confidence the companies have in this partnership.

In short, the agreement between Apple and Broadcom shows that not only is Apple dedicated to investing in the US economy, but it is also committed to increasing its 5G capabilities. This move is thought to give Apple an advantage over its competitors as it will have access to market-leading RF components.