(RepublicanDaily.org) – The major computer and cellphone supplier Apple has signed a multi-billion dollar deal to buy United States-assembled computer chips, Fox Business reported. The deal comes as trade tensions between the United States and the world leader in chip production China have reached a high point. The deal was reached between Apple and Broadcom, a manufacturing leader in technology and advanced manufacturing. Broadcom will reportedly produce 5G radio frequency chips for Apple devices. The new deal reportedly “broadens” the relationship between Apple and Broadcom to involve Broadcom in more components of the chip production process, The Financial Times reported. The partnership, which centers on 5G radio frequency, pushes further the Apple company’s efforts to “buy domestically.”
Following the deal announcement, shares of Broadcom stock went up by 2.2%, Nikkei Asia reported. While the cost of the deal was publicly reported as “multi-billion,” the exact volume was described as being for “sufficient manufacturing capacity,” to produce American-made chips for Apple, Nikkei Asia reported.
Before the deal was reached in May 2023, Apple and Broadcom had a previous deal for $15 billion that was reportedly set to expire in June, Nikkei Asia said, quoting Bernstein analyst Stacy Rasgon. Rasgon reportedly stated the opinion that it was “good” for the deal to remove the overhang between the newly pinned deal and the previous agreement.
Apple’s CEO Tim Cook released a public statement noting that all of Apple’s technology was dependent on technology that was engineered domestically within the United States, Nikkei Asia quote. For that reason, Cook stated that the company intended to continue to deepen its relationships with entities within the United States.
Media analysts pondered the politics of the Apple-Broadcom deal. Analysts stated that the deal was a “big moment” for Apple, but not because of the 5G chips, Barron’s wrote. Rather, analysts stated that the deal was big because it signaled that Apple was “willing to buy American,” as the trade conflict between the United States and China over chip production “heated up,” Barron’s wrote.
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