Apple Strikes Multibillion-Dollar Supply Deal With Broadcom
1 min read
23 May 2023, 07:56 PM IST
Chip maker will supply components made in the U.S.
PremiumApple said it has struck a multiyear, multibillion-dollar deal with chip and network equipment maker Broadcom for components that will be made in the U.S.
As part of the deal, Broadcom will supply Apple with 5G radio frequency components and wireless connectivity components, Apple said. The 5G radio frequency components will be built in several manufacturing hubs around the U.S., including in Fort Collins, Colo.
“We’ll continue to deepen our investments in the U.S. economy because we have an unshakable belief in America’s future," Apple Chief Executive Tim Cook said.
In a securities filing, Broadcom said it has entered into two multiyear statements of work with Apple. It didn’t specify the value of the deal.
Apple, the world’s largest maker of consumer electronics by annual revenue, makes up 20% of Broadcom’s revenue. Their agreement comes as Apple has sought to make its own chips and lessen its dependence on suppliers.
Shares of Broadcom rose 3% to $698.60 in premarket trading.
Write to Will Feuer at Will.Feuer@wsj.com
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