Check out the multi-billion dollar bill that Apple signed with Broadcom to use made in U.S chips

Apple on Tuesday stated that it has entered a multi-billion-dollar deal with chipmaker Broadcom to use chips made in the United States

Apple on Tuesday stated that it has entered a multi-billion-dollar deal with chipmaker Broadcom to use chips made in the United States. Under the multi-year deal, Broadcom will now develop 5G radio frequency components with Apple that will be designed and built in several U.S. facilities, including Fort Collins, Colorado, where Broadcom has a major factory, Apple said.

Broadcom were up 2.2 percent after the announcement, hitting a record high. The chipmaker is already the topmost supplier of wireless components to Apple, with about one fifth of its revenue coming from the iPhone maker in its two most recent fiscal year. Apple has now been rapidly diversifying its supply chains, building more products in India and Vietnam and saying that it will source chips from a new Taiwan Semiconductor Manufacturing plant under construction in Arizona. The two companies did not disclose the size of the deal yet, with Broadcom saying only that the new agreements require it to allocate Apple “sufficient manufacturing capacity and other resources to make these products.” Broadcom and Apple previously had a three-year, $15 billion (roughly Rs. 1,24,100 crore) agreement that Bernstein analyst Stacy Rasgon said was set to expire in June. He said the initiated development and ties were positive for Broadcom, despite the fact that the two firms did not give a time frame for how long the work will last.

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Apple announced it will tap Broadcom for what are known as film bulk acoustic resonator (FBAR) chips. The FBAR chips are part of a radio-frequency system that helps iPhones and other Apple devices connect to mobile data networks. “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 CEO Tim Cook said in a statement.