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Apple inks multi-billion-dollar deal with Broadcom

STORY: In a major move to use more American-made parts, Apple said it has entered a multi-billion-dollar deal with chipmaker Broadcom for chips that will be manufactured in the United States.

Under the multi-year deal, announced Tuesday, Broadcom will develop 5G radio frequency components with Apple that will be designed and built in several U.S. facilities, including Fort Collins, Colorado, where Broadcom has a major factory.

Specifically, Broadcom will supply what are known as film bulk acoustic resonator or FBAR chips. FBAR chips are part of a radio-frequency system that helps iPhones and other Apple devices connect to mobile networks.

Broadcom is already a major supplier of wireless components to Apple.

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In a statement, Apple CEO Tim Cook said the tech giant will (quote) “continue to deepen our investments in the U.S. economy because we have an unshakable belief in America’s future."

Apple shares were down slightly in Tuesday morning trading, while shares of Broadcom were up more than one percent.