Tuesday, May 30, 2023

Apple boosts supply of chips in US with multi-million dollar contract with Broadcom economy

The multi-million dollar multi-year contract propelled Broadcom to an all-time high in the stock market. There’s no number or period, but the customer is known: Apple. The world’s most valuable private company relies on its neighbor in San Jose (California) for supplies and that’s been enough to boost Broadcom’s price, which marked a maximum of $698.99 per title on Tuesday. With this contract, the iPhone maker increases its supplies from the United States with which it wants to be less dependent on foreign supply chains.

Broadcom, which is already a regular supplier to Apple, has risen in value by 25% so far this year, taking its market capitalization or market value to $290,000 million (about 270,000 million euros), the third largest among the four largest Spanish companies. (Inditex). , Iberdrola, Santander and BBVA) based on simultaneous value on the stock market. The apple is worth $2.7 trillion.

Broadcom also hasn’t disclosed the amount of the agreement to the watchdog: “Certain subsidiaries of Broadcom have signed two independent multi-year contracts with Apple,” it says only, “they will produce radio frequency components and modules and high are intended to supply a range of “high-performance wireless devices for use in Apple products”, according to a communication submitted to the Securities and Exchange Commission (SEC) by Kirsten Spears, its chief financial officer.

Through a statement, Apple has at least revealed that these are multi-billion dollar contracts. “Through this collaboration, Broadcom will develop 5G radio frequency components — including FBAR filters — and state-of-the-art wireless connectivity components,” says the iPhone maker. FBAR filter is a type of high performance microchip specialized for communication. They will be designed and built in several US technology and manufacturing centers, including Fort Collins, Colorado, where Broadcom has facilities.

“We are pleased to make commitments that harness the ingenuity, creativity and innovative spirit of American manufacturing,” Apple CEO Tim Cook said in the statement. “All Apple products depend on technology designed and built here in the United States, and we will continue to deepen our investments in the American economy because we have unwavering faith in the future of the United States,” he says in a message that There is music. into the ears of Joe Biden, who successfully promoted legislation in the first half of his term to boost investment in microprocessor manufacturing in the United States.

Apple says the deal is part of a commitment to invest $430 billion in the US economy over five years through 2021. Apple is currently on track to meet its target through direct spending on US suppliers, data center investments, US investments and other spending, the company says, as it looks to reduce its reliance on China for risks. tries to. Two superpowers.

Apple is Broadcom’s largest client and accounts for about 20% of its turnover. The Tim Cook-led company considered developing its own microprocessors to replace microprocessors supplied by Broadcom (as it produces its other computers, mobile phones, tablets and accessories), but it There is a compliment to the contract manufacturer.

Broadcom reached an agreement a year ago to acquire VMware in a deal valued at $61 billion in cash and stock. It is one of the largest purchases in the technology sector in its history. If it goes ahead successfully, Broadcom would remove the thorn from a frustrated purchase of Qualcomm, which would have been the largest in the sector’s history and which was vetoed in 2018 by Donald Trump’s administration, which saw it as a threat to its own . National Security. Despite being founded in the United States, Broadcom was headquartered in Singapore. Since then, he has moved to San Jose, California, about 20 miles from VMware’s Palo Alto headquarters.

Nation World News Desk
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