Apple CEO Tim Cook holds the new iPhone 14 at an Apple event at their headquarters in Cupertino, California, September 7, 2022.
Carlos Barria | Reuters
Apple on Tuesday announced a new multibillion-dollar deal with Broadcom to develop 5G radio frequency components in the U.S.
“We’re thrilled to make commitments that harness the ingenuity, creativity, and innovative spirit of American manufacturing,” Apple CEO Tim Cook said in a release.
Shares of Broadcom were up around 3% Tuesday morning. Shares of Apple were down less than 1%.
The 5G radio components developed by Broadcom, a technology and advanced manufacturing company, will include FBAR filters and other wireless connectivity components, according to the release. These components are different from the 5G modems that are made by Qualcomm.
Apple said its deal with Broadcom is part of its 2021 commitment to invest $430 billion in the U.S. economy. The deal marks the latest phase of partnership between the two companies, as Broadcom announced it would sell $15 billion of wireless components to Apple in 2020.
The company said the deal with Broadcom will also allow it to invest in “critical automation projects and upskilling” with engineers and other technicians. Apple already supports more than 1,100 jobs in Broadcom’s Fort Collins FBAR filter manufacturing facility, according to the release.
Broadcom did not immediately respond to CNBC’s request for comment.