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Apple Store (in Chicago): "We will continue to expand our investments in the U.S. economy"
Photograph:
IMAGO/Jakub Porzycki / IMAGO/NurPhoto
The American tech company Apple has signed a billion-dollar contract with chip manufacturer Broadcom for the use of semiconductors manufactured in the USA.
As part of the multi-year agreement, the companies will develop 5G wireless components that will be produced at several locations in the United States, Apple announced on Tuesday. Broadcom is contracted to manufacture so-called FBAR chips, which are part of the radio frequency system that connects the iPhone and other Apple devices to mobile data networks.
"All Apple products depend on technology designed and manufactured here in the United States, and we will continue to expand our investment in the U.S. economy," said Apple CEO Tim Cook. He spoke of an "unshakable belief in the future of America." Following the announcement, Broadcom shares jumped 4.3 percent in premarket trading.
Details are not being disclosed
The two companies did not disclose the scope and duration of the deal. Broadcom said only that the new agreements require Apple to provide "sufficient manufacturing capacity and other resources to manufacture these products."
Apple has steadily diversified its supply chains, building more products in India and Vietnam, and has announced that it will source chips from a new plant of the world's largest chipmaker TSMC, which is currently being built in Arizona.
sol/dpa/Reuters