Apple has announced a substantial multi-year agreement with chipmaker Broadcom, aimed at incorporating more American-manufactured parts into its products. The collaboration between the two US companies will focus on developing components for 5G devices, with an emphasis on designing and manufacturing them within the United States. This deal aligns with Apple’s previously declared commitment to investing $430 billion in the US economy, a plan unveiled in 2021. The move comes amid an escalating trade dispute centered around the technology industry between Washington and Beijing.
The ongoing trade conflict has prompted the US to implement various measures against China’s chip manufacturing sector while injecting billions of dollars into bolstering its own semiconductor industry. Recently, major US tech giants have faced increased scrutiny from lawmakers across party lines regarding their dependence on Chinese manufacturers and components. In response, Apple has been gradually diversifying its supply chains, expanding production to countries like India and Vietnam.
Last year, Apple revealed its intention to purchase semiconductors from a factory being constructed in Arizona by Taiwanese chipmaking giant TSMC. Additionally, the company announced plans in 2022 to manufacture the iPhone 14 in India, a significant step toward diversifying its manufacturing beyond China. This expansion augmented Apple’s existing manufacturing operations in India, where iPhones have been produced since 2017 in the southern state of Tamil Nadu.
Apple also recently inaugurated its inaugural retail stores in India, with locations in Mumbai and Delhi. As part of the expanded agreement with Broadcom, components for Apple devices will be designed and manufactured in Colorado and other regions within the US. Apple’s CEO, Tim Cook, expressed enthusiasm about the commitments made, emphasizing the utilization of American manufacturing’s ingenuity, creativity, and innovative spirit.
Tensions between the US and China have escalated in recent months. Most recently, China declared products manufactured by Micron Technology, a prominent US memory chip giant, to be a national security risk. This action represents Beijing’s initial significant move against a US chip maker, as the country’s cyberspace regulator cited “serious network security risks” associated with America’s largest memory chip manufacturer.