Apple Signs Multi-Billion Dollar Deal with Broadcom for 5G Component Development

iPhone manufacturer Apple announced on the 23rd (local time) that it has signed a new multi-billion-dollar contract with Broadcom to develop 5G wireless frequency components within the United States.

Apple CEO Tim Cook said, "We are pleased to make a commitment to harness the ingenuity, creativity, and spirit of innovation of American manufacturing," adding, "All of Apple's products rely on technology designed and made in the United States, and with a firm belief in the future, we will continue to strengthen our investment in the U.S. economy."

[Image source=Reuters Yonhap News]

Through this collaboration, Broadcom will develop 5G wireless frequency components, including FBAR filters, and cutting-edge wireless connectivity components at its production hubs in the U.S., including Fort Collins, Colorado.

Apple stated that it already supports more than 1,100 jobs at Broadcom's Fort Collins production facility, and this partnership will allow Broadcom to continue investing in automation projects. The financial media CNBC reported that "the 5G wireless components developed by Broadcom are different from Qualcomm's 5G modems," describing this contract as "the latest stage in the partnership between the two companies."

In recent years, Apple has continued investing in the development of 5G technology within the United States. The company explained that this is part of Apple's 2021 announcement to invest more than $430 billion in the U.S. economy over five years.

On the morning of the day, Broadcom's stock price on the New York Stock Exchange was trading more than 2% higher than the previous session, while Apple's stock price showed a slight decline.