Apple announced that it has entered into a multi-billion dollar deal with chipmaker Broadcom to increase its usage of US-made parts. The two American companies will collaborate over multiple years to develop components for 5G devices, which will be both designed and manufactured in America.
According to Apple, this agreement is a part of its 2021 plan to invest $430 billion (£346 billion) in the US economy.
The move comes as a trade row centred on the technology industry intensifies between Washington and Beijing. The long-running dispute has seen the US impose a series of measures against China’s chip making industry and invest billions of dollars to boost America’s semiconductor sector.
In recent months, US tech giants have come under increased scrutiny from both Democrat and Republican lawmakers over their reliance on Chinese manufacturers and components. Apple has been gradually diversifying its supply chains, with more of its devices now made in countries like India and Vietnam.
Last year, Apple announced its intention to purchase semiconductors from a factory that Taiwanese chipmaking giant TSMC is constructing in the US state of Arizona In 2022, Apple also announced plans to make the iPhone 14 in India, a significant milestone in the company’s strategy to diversify manufacturing outside of China.
The move expanded the company’s Indian manufacturing operations – it has been making iPhones in the southern state of Tamil Nadu since 2017.
Last month, Apple launched its first Indian retail stores – in the financial hub Mumbai and the country’s capital Delhi.
In the latest deal, which enhances the existing relationship between the iPhone maker and Broadcom, Apple and Broadcom will collaborate to design and build components for Apple devices in Colorado and other parts of the US.
“We’re thrilled to make commitments that harness the ingenuity, creativity, and innovative spirit of American manufacturing,” Apple’s chief executive Tim Cook said in a statement. Tensions between the US and China have escalated in recent months.
Earlier this week, China said products made by US memory chip giant Micron Technology were a national security risk, in Beijing’s first major move against a US chip maker.
The country’s cyberspace regulator announced on Sunday that America’s biggest maker of memory chips poses “serious network security risks”.