Thursday, July 18, 2024
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Apple inks multibillion-dollar deal for US-made chips

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AApple announced a multi-billion dollar deal with US chipmaker Broadcom to use chips manufactured in the United States, as part of its 2021 plan to invest $430 billion in the US economy over five years . The move comes at a time when the US is looking to reduce its dependence on foreign chip makers.

As part of the multi-year deal, Broadcom will collaborate with Apple to develop 5G radio frequencies and wireless connectivity components. According to Apple, the technology will be designed and manufactured at facilities across the country, including Fort Collins, Colorado, where Broadcom has a major facility.

“Apple already helps support more than 1,100 jobs at Broadcom’s Fort Collins FBAR filter manufacturing facility, and the partnership will enable Broadcom to continue investing in critical automation projects and upskilling with technicians and engineers,” Apple said in a statement on Tuesday.

The announcement comes as the US is shifting its focus towards domestic semiconductor production in an effort to reduce American companies’ dependence on foreign chip makers. Last summer, President Biden signed a bipartisan Chips and Science ActOne of the largest federal investments in a private industry, including $52 billion in subsidies for domestic chip makers, $24 billion in tax credits for new semiconductor manufacturing facilities, and $170 billion over five years to boost American scientific research include more than

Most advanced semiconductors are manufactured in China and Taiwan, which many US officials see as a national security concern. The pandemic-induced supply chain shocks, which triggered a semiconductor shortage, also highlighted global dependence on a few key players for chips needed, especially in the electronics and automotive industries.

“All of Apple’s products depend on technology engineered and manufactured in the United States, and we will continue to deepen our investments in the American economy because of our unwavering belief in America’s future,” Apple CEO Tim Cook said in a statement. Is.”

The US is not the only country seeking to reduce its reliance on Asian chip makers. member states of the European Union agreed its own €43 billion ($46 billion) CHIPS act to boost semiconductor production in the bloc, while the UK also unveiled a £1 billion ($1.2 billion) semiconductor strategy In recent times.

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write to Simone Shah at [email protected].