Investing.com - In a significant move towards increasing reliance on domestically produced components, tech giant Apple Inc (NASDAQ:AAPL) has entered into a multi-billion dollar partnership with leading chipmaker Broadcom Inc (NASDAQ:AVGO). The collaboration aims to develop and manufacture 5G components within the United States.
This strategic alliance is part of Apple's previously announced investment plan, which targets injecting $430 billion into the US economy. The deal comes amid escalating trade tensions between Washington and Beijing, particularly concerning the technology sector. In response to these disputes, the US government has taken measures against China's semiconductor industry while investing billions in its own domestic sector.
With mounting pressure from both political parties over their dependence on Chinese manufacturers and parts, major US tech companies have been actively diversifying their supply chains. Apple has expanded manufacturing operations to countries such as India and Vietnam in recent years.
In addition to partnering with Taiwanese semiconductor company TSMC for chips made in an Arizona-based factory last year, Apple also revealed plans for iPhone 14 production in India earlier this year – marking a significant step toward reducing manufacturing dependency on China.
Expanding further within India, Apple began producing iPhones at Tamil Nadu since 2017 and recently opened retail stores located in Mumbai and Delhi.
Under the new agreement with Broadcom—which builds upon an existing relationship—Apple device components will be designed and manufactured across various locations throughout Colorado as well as other parts of America. Expressing excitement about this commitment aimed at leveraging American innovation, creativity, and ingenuity through local manufacturing efforts was Tim Cook - CEO of Apple Inc., who released a statement regarding the partnership announcement.