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

[name99]

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

Unclear, but probably incorrect.

First Broadcom doesn't sell 5G modems. So...

Second the announcement is very specific that what's being bought are very specific components (think things like filters or RF power amplifiers). I don't want to say that these are trivial components, more that they are natural boundaries at which to reduce the size of a modem project. You could draw an analogy with something like the PMIC; for years this was a third party component (even though obviously Apple cares an awful lot about power management on iPhone). The main issue was simply priorities; the payoff from controlling the PMIC was lower than the payoff from Apple designing other elements of the iPhone, right up until all those other elements were part of the internal Apple iPhone project.

Same thing here. At some point Apple may design their own filters, RF amplifiers, etc; but that's just not a tier one priority for the modem project.

If this were some random deal with a Japanese or Taiwanese company it would not get any sort of announcement. The only part that matters is that both Apple and Broadcom see favorable political PR in announcing that at least this (small) part of future iPhones will be made in the US (for at least a few years).

 

[MuppetGate]

Good to see some domestic manufacturing work for the US.

Mmm … one downvote. Odd

 

[MuppetGate]

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.

That is a good point. Unfortunately, it’s probably not very practical. Apple Would have absorb the cost of setting up facilities, retooling them, hiring staff etc.

And then with advances in manufacturing, they’d have to do it again. This would probably double the price of their stuff.

 

[BWNYC]

wow -- this is all a little disheartening for an amateur electrical engineering enthusiast like me. I figured many people would have already known that modem stands for modulation demodulation. A modem is not the same thing as the RF front end components. Broadcom is making RF front end components for Apple, and Apple is making the modem. sigh.

 

[citysnaps]

They have a facility in fort collins, Colorado for design AND manufacture.

Really, for Apple modem chips using the latest process node, and at Apple's required volumes?

Perhaps you are referring to FBAR duplexers required in the antenna/receiver/transmitter signal chain which are analog and lower tech.

 

[jonnysods]

Mmm … one downvote. Odd

Yeah not sure what that was about - the person made an angry emoji!

 

[Gui.01]

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

That was exactly first thing which came to my mind.

 

[Corefile]

The problem with Broadcom is that they're Broadcom. Good luck Apple!

 

[Glideslope]

The problem with Broadcom is that they're Broadcom. Good luck Apple!

Yup, and this will really twist the knife into the back of SkyWorks. Our oldest son's wife left SkyWorks 6m ago for a position at MIT's Lincoln Lab. She mentioned last December how Apple was going to go big on Broadcom without giving details.

 

[tgara]

Good to see some domestic manufacturing work for the US.

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

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

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

The prior administration set the wheels in motion for this back in 2016 and 2017.

Apple Chips Deal is A Result of Trump's 2017 U.S. Jobs Push.

Apple and Broadcom have announced a multibillion-dollar agreement over 5G and wireless components to be made in Fort Collins, Colorado

thenationalpulse.com

Similar situations are not likely to happen in the current administration unfortunately.

 

[krakenrelease]

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

I think you mean "design" not "make"

 

[MacDownunder]

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.

There is a big issue with what you are saying in that the cost of the end product would be significantly higher than if parts made by multiple suppliers who can provide the product needed at a good price.
I doubt people will stump up the $$ if it were wholly manufactured in the US.
JIT supply has worked for decades (and not just this industry), yes a once in, hopefully, a lifetime event bought the world to its knees - mostly to do with over draconian lockdowns in countries (heck im for Aus and our state had some of the worst/hrashest in world so this isnt just the countries that manufactured product that were affected)
Just be careful what you wish for as I dont think you'd pay double the prices you are paying now?
Go check on most western countries debt and you'll see this isnt as straght forward as it might seem on the surface

 

[senttoschool]

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.

Do you have a source that all of Apple’s SoCs will be made in Arizona?

Because it’s a clearly wrong. Arizona will only have 5nm with plans for 3nm in a few years.

TSMC will always keep its most advanced node in Taiwan as part of an agreement with the Taiwanese government.

 

[duffman9000]

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:

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

FYI: that’s the old Broadcom campus.

 

[duffman9000]

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.

Apple doesn’t want to manage a factory that needs to be in constant use to be profitable. See Intel for an example.

 

[svish]

Good to hear this! Good to see production expand in US

 

[_Spinn_]

This is a very interesting move.

 

[zapmymac]

Diversify ✅ that basket of eggs

 

[Boeingfan]

Fantastic to see the on-shoring of manufacturing to the USA. I hope other companies around the world take the lead and reinvigorate their own country’s manufacturing capabilities. COVID has shown that the fragile make it as they pay for it international supply chain is not fit for purpose.

 

[cmcbhi]

But now, all those with visual arts degrees and student debt will have to go to work. But wait, what use is a visual Arte degree for real work?

 

[falkon-engine]

Rumors aren't fake news. That's why we call them rumors.

It's fake news if there was never any truth to the so-called rumor. If Apple is spending billions of dollars on this deal with Broadcom, it had to have been in the works for a while... with time spent negotiating the terms and conditions.

So how can there be any truth to the so-called rumor from Jan 2023 that Apple is building its own radios (for 5G, Wifi and Bluetooth) and is cutting off both Qualcomm and Broadcom within the next 1-2 years? See https://forums.macrumors.com/thread...omm-modem-chips-in-late-2024-or-2025.2376406/

"In addition to transitioning to its own in-house chips starting in 2024, Apple wants to stop using wireless components from Broadcom in 2025. Apple is working on a WiFi and Bluetooth chip that would replace the components that it is currently sourcing from Broadcom."​

It's starting to appear that it wasn't a 'rumor' at all, it was Fake News.

 

[djphat2000]

Do you have a source that all of Apple’s SoCs will be made in Arizona?

Because it’s a clearly wrong. Arizona will only have 5nm with plans for 3nm in a few years.

TSMC will always keep its most advanced node in Taiwan as part of an agreement with the Taiwanese government.

Tim Cook says Apple will use chips built in the U.S. at Arizona factory

Apple CEO Tim Cook spoke at an event in Arizona on Tuesday where he confirmed Apple will buy chips built in the U.S.

www.cnbc.com

All the SoC's? Not likely, but for US and near the US. Supply Chain issues should be lessened.
And it states 4nm (most likely 5+ or whatever they call it) and 3nm. And as the site isn't going to be up for a bit. A few years before we get product it will be.

I can't speak for the Taiwanese govt and whatever deal they have with TSMC. But, I can't imagine it would be a lesser node process in the US. Equal would be my guess. Since Taiwan and China will continue to have "issues" for the foreseeable future. It would behove them to not put all their eggs in the preverbal country basket.

 

[djphat2000]

The prior administration set the wheels in motion for this back in 2016 and 2017.

Apple Chips Deal is A Result of Trump's 2017 U.S. Jobs Push.

Apple and Broadcom have announced a multibillion-dollar agreement over 5G and wireless components to be made in Fort Collins, Colorado

thenationalpulse.com

Similar situations are not likely to happen in the current administration unfortunately.

FACT SHEET: CHIPS and Science Act Will Lower Costs, Create Jobs, Strengthen Supply Chains, and Counter China | The White House

In President Biden’s first year in office, the Biden-Harris Administration has implemented an industrial strategy to revitalize domestic manufacturing,

www.whitehouse.gov

 

[groove-agent]

Didn’t Broadcom make dial up modems back in the day? Oh maybe I’m thinking of US Robotics. Maybe they made Ethernet cards popular in the late 90s.

 

[krakenrelease]

Didn’t Broadcom make dial up modems back in the day? Oh maybe I’m thinking of US Robotics. Maybe they made Ethernet cards popular in the late 90s.

Here's a link to their company history page. Been making products since the 1960's

Company History

Broadcom Inc. is a global technology leader that designs, develops and supplies a broad range of semiconductor, enterprise software and security solutions.

www.broadcom.com