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Apple Announced a Multibillion Dollar Deal with Broadcom to Supply Chips made in the US.

Apple announces multi-billion dollar deal with Broadcom to develop 5G radio frequency components in U.S.

According to a press statement from Apple CEO Tim Cook, “We’re thrilled to make commitments that harness the ingenuity, creativity, and innovative spirit of American manufacturing.”

On Tuesday morning, shares of Broadcom were up about 3%. Shares of Apple were down less than 1%.

FBAR filters and other wireless communication components will be a part of the 5G radio components created by Broadcom, a technology and advanced manufacturing business, according to the statement. These parts are distinct from the Qualcomm-produced 5G modems.

Apple stated that its agreement with Broadcom is a part of its pledge to invest $430 billion in the American economy by the year 2021. The agreement is the latest stage of the two businesses’ collaboration after Broadcom declared it will sell $15 billion worth of wireless components to Apple in 2020.

The business claimed that the agreement with Broadcom will also enable it to invest in “critical automation projects and up skilling” of engineers and other technical staff. According to the press statement, Apple already sustains more than 1,100 jobs at Broadcom’s FBAR filter production facility in Fort Collins.

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