Speaking of the current deal with Broadcom, the components for Apple’s products will be manufactured in Colorado and other parts of the US
Reports now surfaced that a multi-billion dollar contract has been signed between the Cupertino tech giant Apple and the US based chipset manufacturer Broadcom so that country relies less on the Asian countries for components and chips and becomes self-sufficient. As per the deal, both the firms will develop components for 5G products, which will be exclusively manufactured and designed in the United States.
Apple spokesperson told the media that this contract is part of their plan 2021 when it proclaimed to invest $430bn in the American economy. In the past few years, the US imposed stern restrictions and moves against China's growing semiconductor ecosystem and also invested billions of dollars to perk-up the country’s manufacturing ecosystem. Also, in the past few months, the major US tech giants have come under scrutiny and massively criticized by both the Republicans and the Democrat for its massive dependence on Chinese components and manufacturers.
Hence, Apple has changed its business model by diversifying its global supply chains with more of its products now manufactured in countries like Vietnam and India. In fact, a year back, the company also announced that it will buy chips from TSMC, which has decided to set-up its new factory in the US state Arizona. The company also mentioned that it would manufacture its latest iPhone 14 in India in 2022, which is seen as an imperative business strategy to diversify manufacturing other than China.
This business strategy increased the manufacturing operations of Apple on Indian soil. The company has been assembling iPhones in Tamil Nadu since 2017 and speaking of the current deal with Broadcom, the components for Apple’s products will be manufactured in Colorado and other parts of the US. In a press conference, Apple’s CEO, Tim Cook said “We're thrilled to make commitments that harness the ingenuity, creativity, and innovative spirit of American manufacturing.”
And in the past few months, geopolitical tussles have augmented between China and the US and China recently mentioned that Micron manufactured products pose a serious risk to national security.
