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Tuesday, December 5, 2023

Apple Strikes Multi-Billion Dollar Deal with Broadcom for US-Made Components

Apple has announced a multi-billion dollar deal with chipmaker Broadcom, aiming to incorporate more US-made components into its products.

As part of the long-term agreement, the two American companies will collaborate on the development of 5G device components that will be both designed and manufactured within the United States.

This partnership aligns with Apple’s 2021 commitment to invest $430 billion (£346 billion) in the US economy.

The move comes amid escalating trade tensions between Washington and Beijing, particularly within the technology industry. The US has implemented various measures against China’s chip manufacturing sector while also investing significant funds to strengthen its domestic semiconductor industry.

In recent times, US tech giants have faced growing scrutiny from lawmakers across party lines due to their heavy reliance on Chinese manufacturers and components.

To mitigate risks and diversify its supply chains, Apple has gradually expanded manufacturing operations beyond China, leveraging countries like India and Vietnam.

Last year, Apple announced its plans to procure semiconductors from a Taiwanese chipmaking giant, TSMC, which is constructing a factory in Arizona, USA.

Moreover, in 2022, Apple unveiled its strategy to manufacture the iPhone 14 in India, a crucial step toward broadening its manufacturing base outside of China. This expansion augmented the company’s existing Indian manufacturing operations, which had been active in the state of Tamil Nadu since 2017.

Recently, Apple introduced its first retail stores in India, located in Mumbai and Delhi, bolstering its presence in the country.

Under the new deal, which expands upon Apple’s existing partnership with Broadcom, components for Apple devices will be designed and produced in Colorado and other parts of the United States.

Apple’s CEO, Tim Cook, expressed enthusiasm about the commitments made, emphasizing the utilization of American manufacturing’s ingenuity, creativity, and innovative spirit.

Tensions between the US and China have continued to escalate, with China recently labeling products from major US memory chip manufacturer Micron Technology as a national security risk, marking a significant move against an American chip maker by Beijing’s cyberspace regulator.

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