Apple Announces Multibillion-Dollar Deal With Broadcom to Make Components in the USA

[MacRumors]

Apple today announced a multibillion-dollar deal with American technology company Broadcom to make several key components for its devices in the United States.

The multi-year agreement with Broadcom will see Apple use 5G radio frequency and wireless connectivity components, including FBAR filters, that are designed and manufactured in the U.S. Apple CEO Tim Cook said:

We're thrilled to make commitments that harness the ingenuity, creativity, and innovative spirit of American manufacturing. All of Apple's products depend on technology engineered and built here in the United States, and we'll continue to deepen our investments in the U.S. economy because we have an unshakable belief in America's future.

Apple has collaborated with Broadcom for many years, with the company providing important chips for devices like the AirPort and iPhone 5S. Apple noted that it already supports over 1,100 jobs in Broadcom's Fort Collins FBAR filter manufacturing facility, and the partnership will see continued investment in automation projects and training programs for technicians and engineers.

The investments are part of the commitment Apple made in 2021 to invest $430 billion in the U.S. economy over a period of five years. The company today said that it is on track to meet its target through direct spending with American suppliers, data centers, capital expenditures, and more.

Article Link: Apple Announces Multibillion-Dollar Deal With Broadcom to Make Components in the USA

 

[jonnysods]

Good to see some domestic manufacturing work for the US.

 

[Dreamweaver12]

So they couldn't figure out how to make their own 5G modem and had to go crawling back to Broadcom.

 

[Apple Fan 2008]

Good, this is a start in the right direction.

 

[cthompson94]

So they couldn't figure out how to make their own 5G modem and had to go crawling back to Broadcom.

Why spend time and money when you can just buy an established player

 

[rpmurray]

Incoming lawsuit from Qualcomm in 3 ... 2 ... 1.

 

[Dreamweaver12]

Why spend time and money when you can just buy an established player

Uh...because they were in a bitter lawsuit and hate each other?

 

[KurtWilde]

So they couldn't figure out how to make their own 5G modem and had to go crawling back to Broadcom.

They’re making their own modems the same way they make their own silicon

 

[neuropsychguy]

Uh...because they were in a bitter lawsuit and hate each other?

There was a lawsuit with Qualcomm (not Broadcom who this deal is with) but even if this was Qualcomm, why would there be hate? These are companies and the people running them make decisions that benefit their finances and growth potential. "Hate" will get a business nowhere very quickly.

 

[dannyyankou]

So they couldn't figure out how to make their own 5G modem and had to go crawling back to Broadcom.

Apple will make the modems, Broadcom will manufacture them. Similar to how Apple makes the iPhone processors and TSMC manufacturers them.

 

[mpuk]

Great news on the re-shoring. Please sir, could we have some more?

 

[Dreamweaver12]

They’re making their own modems the same way they make their own silicon

Well, I'm not sure it's the same. Is Broadcom a contract fab for competing 5G modems? TSMC doesn't design chips. Their IP is the process for chip fab.

 

[Powerbooky]

We can hope that more electronics will be designed and manufactured back home, just like a few decades ago.

 

[cthompson94]

Uh...because they were in a bitter lawsuit and hate each other?

Money talks, and the few disgruntled employees that really feel strongly about the acquisition can leave. You know how many lawsuits large corporations get that sometimes end up being a acquisition.

 

[KENESS]

So they couldn't figure out how to make their own 5G modem and had to go crawling back to Broadcom.

Broadcom isn't Qualcomm... I think you might be mixing those two up.

Broadcom would manufacture Apple's 5G modems and related components, in the same way TSMC manufactures Apple Silicon chips.

 

[caliguy]

Good on Tim Apple! Been a while since we've had good news like this.

 

[Dreamweaver12]

Broadcom isn't Qualcomm... I think you might be mixing those two up.

Broadcom would manufacture Apple's 5G modems and related components, in the same way TSMC manufactures Apple Silicon chips.

son of a bitch, you're right. Apple and Broadcom were involved in a law suit, but difference circumstances. Cal tech sued them both.

SORRY EVERYONE.

 

[falkon-engine]

So it doesn’t sound like apple will be making its own all in one cellular modem + Wi-Fi radio + Bluetooth radio after all?

Rumors = fake news?

 

[falkon-engine]

So they couldn't figure out how to make their own 5G modem and had to go crawling back to Broadcom.

You mean Qualcomm and yes apple crawled back years ago when intel exited the cellular modem business.

 

[gagaliya]

After getting screwed so badly by the shtty intel modem on iPhone 11 Pro Max, I will be getting this years iPhone which still has the Qualcomm modem and stay far away from apple modem for at least few generations.

Those guys cant seem to get their modem right, part of which is due to all the Qualcomm patents, it’s like trying to build a car but the brakes and transmission are patented and can’t be used…

 

[citysnaps]

So it doesn’t sound like apple will be making its own all in one cellular modem + Wi-Fi radio + Bluetooth radio after all?

Rumors = fake news?

It's not clear from the story.

 

[ricketysquire]

I understand Apple's need to bring design in-house from SOCs to modems in order to quote better "control their destiny" . But are they really in "control of their destiny" if they aren't manufacturing anything themselves? At the end of the day they are still beholden to Foxconn or TSMC or in this case Broadcom. Sometimes I wish we'd go back to the days when Apple owned and had their own manufacturing facilities in the US. In a broader sense, I was hoping that the supply chain issues of the last few years would have taught businesses to stop trying to abstratify and overly optimize everything. Just-In-Time supply chains sound great on paper, but if the country you manufacture or get parts from shuts down, then you're just stuck.

 

[citysnaps]

Broadcom would manufacture Apple's 5G modems and related components, in the same way TSMC manufactures Apple Silicon chips.

I don't think Broadcom has any foundries. They're a fabless company. Broadcom could very well be using TSMC for manufacturing their chips.

 

[_apple_apple_]

Presumably as usual; Apple-designed, vendor-manufactured.

In this specific case, there's likely patent licensing behind the scenes. I've read that antenna/5G patents are a minefield and Apple likely could not avoid infringement with their own design.

 

[TechnoMonk]

So they couldn't figure out how to make their own 5G modem and had to go crawling back to Broadcom.

Do you guys think before typing and trashing some one? Or is it a thing on ma rumors. Qualcomm and Broadcom or entirely different companies. The investment sounds to be in automation, probably manufacturing. Apple works closely with TSMC for its processors.