Apple has announced a multibillion-dollar deal with Broadcom for US-made chips
The deal is expected to help Apple reduce its reliance on third-party suppliers like Qualcomm and Intel
Broadcom has been a key supplier of wireless components for Apple's products for several years, and this deal expands their relationship even further
The deal is not the first between Apple and Broadcom, as the two companies previously struck a $15 billion deal for iPhone parts in 2020
The specifics of the deal have not been disclosed, but it is expected to be worth billions of dollars
The deal is also a win for US manufacturing, as it will help to bring more chip-making jobs to the country
However, Apple is also reportedly planning to replace a key Broadcom chip with an in-house design in 2025
Apple's decision to develop more in-house chips could hit Broadcom's revenue by $1 billion to $1.5 billion
The move towards in-house chip development is part of Apple's broader strategy to exert more control over its supply chain and reduce its reliance on third-party suppliers
The move towards in-house chip development is part of Apple's broader strategy to exert more control over its supply chain and reduce its reliance on third-party suppliers