Apple has important iPhone parts produced in the US

Apple has signed a new billion-dollar deal with manufacturer Broadcom to supply 5G components that are produced in American factories.

Broadcom is going for years to come according to Apple in the US manufacture components for wireless connections, including so-called FBAR filters, which iPhones and other Apple devices use to process mobile signals. It also concerns ‘advanced components for wireless connections’.

Broadcom, a long-time major Apple supplier, will manufacture the FBAR filters at its Colorado plant, where it provides more than 1,100 jobs.

Investments in US economy

Apple promised to invest $430 billion in the US economy in five years by 2021. The new deal is part of that. Apple says it is on track to meet the investment target.

Apple CEO Tim Cook said in a statement that the company has “unshakeable faith in America’s future.” The iPhone maker has been trying to become less dependent on China for production in several ways.

Suppliers Broadcom and Qualcomm

Apple is Broadcom’s largest customer, accounting for about 20 percent of the manufacturer’s revenue. By way of comparison: competitor Qualcomm received 22 percent of its annual turnover from the iPhone maker.

Broadcom also makes a component for Apple devices that handles both Wi-Fi and Bluetooth functions, and a so-called RF front end for managing wireless signals. Apple uses the modem chips from Qualcomm.

Apple wants to make more of its own parts

Apple wants to use more and more of its own components in its devices and is also working on its own Bluetooth and Wi-Fi chips, for example, but according to Bloomberg these will only be ready around 2025. By that time, Apple also wants to have its first own modem chip for the iPhone ready.

Its own RF component is even longer than expected, making Apple dependent on Broadcom for years to come. Meanwhile, it also came out that Apple also develops its own screens.

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