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This weeks issue: Semiconductors, Broadcom, Domestic chip-making, Chip War, Apple, Trump and Biden agree on semis, Debt ceiling, Republicans and Biden, U.S. government default, Social security payments, U.S. Treasuries, Money market funds, Owning or buying, Housing bubble, Housing crisis, Core inflation, CPI, UK inflation, Inflation resurgence, Nuclear, Renewable energy, Uranium demand, California blackouts, India and China go nuclear, Cash flows, Energy stocks, Beyond Meat IPO, Beyond Meat burn cash, Consumer preferences, Jim Cramer, Home Depot earnings.
Domestic chip-making gets a boost
Apple and semiconductor manufacturer Broadcom secured a multi-billion-dollar deal to help secure Apple domestic-made chips. The deal which was announced this past Tuesday, secures Apple 5G radio frequency components and wireless chips. The deal which benefits both companies secures Apple a domestic supply of these chips through Broadcom’s manufacturing facility in Fort Collins, Colorado.
Apple announced that this deal was a part of their 2021 commitment to invest $430 billion in the U.S. economy over the next 5 years. Apple also announced it was on pace to reach its U.S. investment goal through its purchase of American suppliers, investments in data centers, and its recent capital investments across the U.S.
This is not the first big agreement between Broadcom and Apple. In 2020, Broadcom announced a deal that would supply Apple with wireless components worth approximately $15 billion.
After this week’s deal announcement, Apple announced that they believe this deal will help Broadcom invest more in their domestic production sites. Apple reportedly supports 1,100 jobs already at Broadcom’s facility in Colorado.
Both Broadcom and Apple shares rose over 1% on Tuesday after this deal’s announcement.