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Apple’s CEO, Tim Cook, expressed excitement about the deal, saying that it will tap into the creativity and innovation of American manufacturing. As a result of this news, shares of Broadcom went up by about 3% while Apple’s shares went down slightly.
The components that Broadcom will develop include things like FBAR filters and other wireless connectivity parts. It’s important to note that these components are different from the 5G modems made by Qualcomm.
Apple stated that this deal with Broadcom is part of their commitment to invest $430 billion in the U.S. economy, which they announced in 2021. This partnership with Broadcom is an extension of their previous collaboration, as Broadcom had sold $15 billion worth of wireless components to Apple in 2020.
Additionally, Apple mentioned that this deal will allow them to invest in automation projects and provide training for engineers and technicians. They already support over 1,100 jobs at Broadcom’s Fort Collins FBAR filter manufacturing facility.