Chip wars: Apple strikes major US-made semiconductor deal

Apple says it has struck a multi-billion dollar deal with chipmaker Broadcom to use more US-made parts.

Under the multi-year deal, the two US companies will develop components for 5G devices that will be designed and manufactured in America.

Apple says the deal is part of a plan it announced in 2021 to invest $430bn (£346bn) in the US economy.

The move comes as a trade feud centered on the tech industry escalates between Washington and Beijing.

The long-running dispute has seen the United States impose a series of measures against China’s chipmaking industry and invest billions of dollars to boost the US semiconductor sector.

In recent months, US tech giants have come under increased scrutiny from Democratic and Republican lawmakers over their reliance on Chinese manufacturers and components.

Apple has gradually diversified its supply chains, with more of its devices now being manufactured in countries like India and Vietnam.

Last year, it announced it would buy semiconductors from a factory being built in the US state of Arizona by Taiwanese chipmaker giant TSMC.

In 2022, Apple also announced plans to manufacture the iPhone 14 in India, an important step in the company’s strategy to diversify manufacturing outside of China.

The move expanded the company’s Indian manufacturing operations – it has been manufacturing iPhones in the southern state of Tamil Nadu since 2017.

Last month, Apple launched its first Indian retail stores – in the financial hub of Mumbai and in the country’s capital, Delhi.

Under the latest agreement, which expands the iPhone maker’s existing relationship with Broadcom, components for Apple devices will be designed and manufactured in Colorado and other parts of the United States.

Tensions between the United States and China have escalated in recent months.

The country’s cyberspace regulator said on Sunday that America’s largest memory chip maker poses “serious network security risks.”