The Blubber

Per CNBC

Apple has recently been trying to reduce its reliance on China for chips, and aside from investments in other countries like India, it has also allocated a significant budget to source chips from the US. This leads the company to reach a multibillion deal with Broadcom to develop 5G radio frequency components.

Apple CEO Tim Cook gave a statement on their decision, saying that they were excited about how they would be investing in American manufacturing. In 2021, the company announced that it would be investing $430 billion into the US economy.

Cook: “We’re thrilled to make commitments that harness the ingenuity, creativity, and innovative spirit of American manufacturing,”

In 2020, Broadcom announced that it would sell wireless components worth $15 billion to Apple. The components that it would be producing would reportedly be different from those of Qualcomm, which is making 5G modems.

According to the release, FBAR filters and other wireless connectivity components would be part of the 5G radio components developed by the company.

So far, Apple already supports over 1,100 jobs within the Fort Collins FBAR filter manufacturing facility of Broadcom.

Upon the announcement, shares of Broadcom were up by 3% on Tuesday morning.

In December, Apple CEO Tim Cook said that the company would be embarking on US-made chips with the Arizona TSMC factory for the very first time. This would provide logistical convenience as well as a solution to the current semiconductor supply issue.

The plant in Arizona would reportedly still be owned by Taiwan Semiconductor Manufacturing Company (TSMC), which owns over half of the global chip market share and already works with Apple iPhones, iPads, and iMac chips.

In April, it was reported that Apple's personal computer shipments saw a 40.5% drop in the first quarter. This was the worst drop by the company since the final three months of 2000.

See flow at unusualwhales.com/flow.

Other News:

• Apple CEO Tim Cook Says Company Will Embark in US-Made Chips with Arizona TSMC Factory
• Apple's, $AAPL, personal computer shipments fell by 40.5% in the first quarter

Resources:

CNBC