Broadcom rises on multibillion-dollar Apple component deal
Shahid Jamil
Apple (NASDAQ:AAPL) has reached a multibillion-dollar deal with Broadcom (NASDAQ:AVGO) for U.S.-made components, helping fulfill an Apple commitment to put $430B into the U.S. economy over five years.
Qualcomm (NASDAQ:QCOM) has dropped 1.7% premarket Tuesday. Broadcom (AVGO) jumped 4.7%.
In the multiyear deal, Broadcom (AVGO) will develop 5G radio frequency components and wireless connectivity components.
The RF components will include FBAR filters designed and built in several American manufacturing and technology hubs, including the Broadcom facility in Fort Collins, Colo.
Apple already helps support more than 1,100 jobs at Broadcom's FBAR facility in Fort Collins.
âAll of Appleâs products depend on technology engineered and built here in the United States, and weâll continue to deepen our investments in the U.S. economy because we have an unshakable belief in Americaâs future," Apple CEO Tim Cook said.
Apple stock (AAPL) was down 0.6% premarket.
Other Apple suppliers were lower premarket as well. Skyworks Solutions (SWKS) slipped 3.4%, and Qorvo (QRVO) fell 1.5%. Micron Technology (MU) was down 0.8%, and it was still wrestling with the impact of Sunday's news that China was restricting the use of its silicon.