It wouldn't be economical for Apple to own and operate their own silicon foundries.
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Apple Announces Multibillion-Dollar Deal With Broadcom to Make Components in the USA
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It wouldn't be economical for Apple to own and operate their own silicon foundries.
Keep in mind the size of these manufacturing companies. All they do is focus on manufacturing and they are quite large, with many many headaches to manage (staying current, regulations, waste disposal, etc). I don't see why Apple would take that on themselves. Governments would also likely block Apple from acquiring one due to anti-trust concerns.
At most I could see Apple eventually automating the final assembly with robots (just a large up front cost). Their recycling robot shows they can make a versatile operation.
Apple will not do manufacturing in house. They just diversify there supply chain to lower cost. Recently Apple has been trying to do modem and screens in house to get away from the high cost of Samsung and Qualcomm doing it for them, but only time will tell if they can achieve this.
Nothing to suggest that, Broadcom make other components that Apple use for 5G, it’s more likely they will support the manufacturing process of those associated chips and support embedding other wireless functions into the modem.
The release specifies supporting design AND manufacturing at has several key American manufacturing and technology hubs, including Fort Collins, Colorado, where Broadcom has a major facility.
I think that may still ultimately be the goal, and this partnership is likely to get them there. since Broadcom have a variety of BT/Wifi and other wireless expertise + already supplying Apple, they’re the best partner to support in the non modem aspects.
They have a facility in fort collins, Colorado for design AND manufacture.
I’m ready for more articles like this. Move what you can here and just get out of china as much as you can elsewhere.
Broadcom has end to end networking switches and expertise in 5G. Apple Engineers could leverage Broadcom’s 5 G research experience and automation.
Where is Apple getting 430 billions over 5 years? They are valued near three trillion, but thats not actual money, just valuation. On top revenue vs net income.
Obv I did not. I was too excited to get my stupid comment in "first," and it wasn't even accurate. I'm the world's first person to do that on the Internet.
Everyone listen up. Broadcom has a few small fabs but those are old and outdated.
Broadcom does not possess 5nm and 3nm fabs needed to make advanced modem chips. Period.
Broadcom is largely fabless. They will not make any modems for Apple with their own fabs.
Stop spreading misinformation so confidently.
Nice Tim. Glad to hear you talking more about America. Keep moving as many components here as you can!
I think you may be thinking of another company, Qualcomm (completely different company than Broadcom)?
make, manufacture.... those 2 words mean the same thing.
Apple will design the modems. Broadcom will make/manufacture them using Apple's designs.
The original Apple press release provided a bit more context.
Basically Apple will spend $430 billion in the US over 5 years. Not so much a true investment.
Broadcom is not fabless.
Apple Wants to Part Ways With Broadcom, but It Might Be Very Hard to Do So
Early in 2023, it was announced that Apple (NASDAQ: AAPL) is working on designing its own WiFi and Bluetooth chips for its devices. The chips Apple wants to replace are supposedly those from silicon design powerhouse Broadcom (NASDAQ: AVGO).Reports further suggest that Apple migh
Can Apple really ditch Broadcom?
Besides providing a multitude of components, there's another very important reason Apple may not be able to completely part ways with Broadcom. Broadcom is often referred to as a "fabless" chip company -- meaning it only designs silicon, and leaves the actual manufacturing of chips to third-party partners like Taiwan Semiconductor Manufacturing. Of chip wafers used by Broadcom's manufacturing partners, 90% came from TSMC last year.But calling Broadcom "fabless" is a bit of a misnomer. Buried in its 2022 annual filing is the fact that it has retained a few small chip fab plants of its own -- one in Singapore; one in Breinigsville, Pennsylvania; and one in Fort Collins, Colorado. These fabs were a very small part of its business, but an important part. According to Broadcom:
The Fort Collins fab is of particular interest here, since Broadcom says it is the sole supplier of FBAR components used in its wireless devices, like those WiFi and Bluetooth components.
The takeaway? Apple has done some impressive silicon work, but designing chips is only part of the battle. It will also need to find a way to manufacture some of these wireless components, and like-for-like replacement fab technology for Broadcom simply may not exist -- at least not without the risk of running afoul of Broadcom's intellectual property rights.
FBAR... that's what Apple is using Broadcom for.
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Remember when Broadcom tried to buy Qualcomm?
Broadcom Proposes to Acquire Qualcomm for $70.00 per Share in Cash and Stock in Transaction Valued at $130 Billion | Broadcom Inc.
The Investor Relations website contains information about Broadcom Inc. 's business for stockholders, potential investors, and financial analysts.
All the manufacturing will be back in the US once the TSMC fab in Arizona is up. I think it's Arizona. Eitherway, more manufacturing will be in the US. Which will limit (at the least) the supply chain issues we have seen.
Plus manufacturing it themselves, meaning they own the fabs. Would be costly. Maybe in 10 more years it would be justifiable if the rest of the world goes to $..T.