Apple announces new multibillion-dollar deal with Broadcom

Apple has announced the culmination of a multi-year, multi-billion dollar agreement with Broadcom. As per the agreement’s terms, Broadcom will take the helm in developing 5G radio frequency components, including FBAR filters, and state-of-the-art wireless connectivity components. Concurrently, a primary production facility of Broadcom, nestled in Fort Collins, Colorado, will spearhead a portion of the design and manufacturing of FBAR filters.

Apple CEO, Tim Cook, voiced his delight at the commitment to harness the ingenuity, creativity, and innovative spirit inherent in American manufacturing. The technological bedrock of all Apple products is rooted in American design and manufacturing. Cook pledged to further strengthen their financial commitment to the U.S. economy.

Apple has played a vital role in bolstering over 1100 positions at the Fort Collins factory. This newfound alliance will enable Broadcom to continue investment in pivotal automation projects and facilitate the skill advancement of technicians and engineers. This forms part of Apple’s 2021 commitment to invest $430 billion across nine U.S. states over five years, to foster cutting-edge technologies such as 5G, chip design, and artificial intelligence, and to create 20,000 jobs nationwide.

In 2019, Apple purchased Intel’s smartphone modem chip business for $1 billion. Prior reports suggested Apple’s plan to introduce its own 5G modulator-demodulator by 2024, to shift away from Qualcomm’s exclusive supply. This year’s iPhone 15 series could potentially be the final series exclusively supplied by Qualcomm. Apple’s subsequent ambition is to integrate 5G baseband, Wi-Fi, and Bluetooth into a single chip, naturally encompassing satellite connectivity capabilities.