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Apple Spends Billions on US-5G Components to Move Production From China

Apple Spends Billions on US-5G Components to Move Production From China

Apple has announced a massive agreement with Broadcom to manufacture new 5G radio frequency components in the United States. Apple, the largest consumer electronics corporation in the world, plans to invest more than $400 billion in U.S. manufacturing, the company announced on May 23.

For example, FBAR filters, which are acoustic resonators that allow iPhones to connect to 5G networks, are included in the Broadcom transaction. Apple has stated that it intends to build a factory near Fort Collins, Colorado, which is home to a Broadcom facility.

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Apple CEO Tim Cook issued a prepared statement saying, “We’re thrilled to make commitments that harness the ingenuity, creativity, and innovative spirit of American manufacturing.” To quote Apple CEO Tim Cook: “All of Apple’s products depend on technology engineered and built here in the United States, and we’ll continue to deepen our investments in the U.S. economy because we have an unshakable belief in America’s future.”

The significance of 5G connectivity in consumer gadgets was emphasized in Apple’s statement announcing the acquisition, and the corporation is investing billions in the domestic development of the technology. As of the year 2020, Apple products could connect to 5G networks.

Unfortunately, a representative from Broadcom was not immediately accessible for comment.

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Apple’s manufacturing in the United States, in numbers

In total, Apple supports around 2.7 million American jobs across its own operations, the iOS app store, and its network of US-based suppliers and manufacturers.

Over the next five years, Apple will invest $430 billion into the American economy.

There are 48 Apple factory locations in the United States, with more than 30 of those being in the Golden State of California. While China is still the primary manufacturing hub for the corporation, India and Vietnam are rapidly emerging as important secondary markets.

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Apple’s goal is to relocate production elsewhere.

Apple’s goal to shift manufacturing out of China includes increasing investment in domestic production like this.

American politicians have been pushing the company to reduce its large-scale operations in China as tensions between the US and China worsen. It also attributes supply chain problems to Chinese policies implemented during the pandemic and disturbances at Foxconn facilities.

As a result, Apple has set up shops in India and Vietnam to mass-produce its products. The corporation has pledged to spend $430 billion on domestic 5G infrastructure and silicon engineering, with a significant portion of that going toward chip fabrication.

In December of last year, Apple CEO Tim Cook said that beginning in 2024, the company will begin purchasing chips from a facility in Arizona that was owned by Taiwan. This announcement was made by the CEO at a forum where Vice President Joe Biden was promoting his $50 billion in investment incentives for businesses to increase domestic manufacture of semiconductors.


What is Apple doing currently?

Apple is planning to spend billions of dollars on US-5G components to move production from China. The company has announced a deal with Broadcom to produce 5G radio frequency components in the United States. The deal is part of Apple’s plan to spend more than $400 billion on domestic manufacturing over the next five years.

Why is Apple doing this?

Apple is facing pressure from American lawmakers to wind down its extensive manufacturing process in China. The company has also blamed Chinese pandemic-era policies and riots at Foxconn factories for supply chain issues. In response, Apple has opened new factories in India and Vietnam to produce hardware like iPhones and Macbooks. Stateside, however, the company has said it will invest $430 billion in domestic 5G infrastructure and silicon engineering, including major money for chip production.

About Emerson Hardy-Blue

Emerson Hardy-Blue is a prolific author specializing in the world of entrepreneurs and founders. With a deep passion for business and innovation, he delves into the journeys, challenges, and triumphs of visionary individuals. Emerson's writings provide invaluable insights and practical advice for aspiring entrepreneurs, offering a roadmap to success. Through his engaging storytelling and expertise, he inspires and empowers readers to pursue their entrepreneurial dreams with confidence and determination.