A Boost for 'Made in America': Apple and Broadcom Tag-Team for Homegrown 5G

Broadcom Inc AVGO stock gained Tuesday after forging a multibillion-dollar deal with Apple Inc AAPL to manufacture components in the U.S.

The semiconductor supplier will develop 5G radio frequency components — including FBAR filters — and cutting-edge wireless connectivity components under the deal.

It will design and build the FBAR filters in several critical American manufacturing and technology hubs, including Fort Collins, Colorado, where Broadcom has a significant facility.

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Tim Cook, Apple's CEO, said, "All of Apple's products depend on technology engineered and built here in the United States, and we'll continue to deepen our investments in the U.S. economy because we have an unshakable belief in America's future."

Apple already helps support over 1,100 jobs in Broadcom's Fort Collins FBAR filter manufacturing facility, and the deal will enable Broadcom to continue to invest in critical automation projects. Across the country, Apple supports over 2.7 million jobs.

Apple is splurging in tens of billions of dollars to develop 5G technology in the U.S. under its commitment in 2021 to invest $430 billion in the U.S. economy over five years.

Countries, including the U.S., Europe, and Japan, have been splurging to boost their semiconductor manufacturing capacity since China's pandemic outbreak hammered the global supply chains fueling an intense chip and component crisis.

Price Action: AVGO shares traded higher by 0.75% at $683.50 on the last check Tuesday.

Image by Matias Cruz from Pixabay