On the shirttails of the supply chain catastrophes of the COVID-19 pandemic and a tumultuous standing with China, many big companies are moving manufacturing to the States. Included in the wave of change is tech-titan, Apple.
Recently, Apple CEO, Tim Cook, announced that they will be investing over $400 billion into the US economy to manufacture components here in America. The partnership will take place with Broadcom, an American tech developer.
The Details Of The Deal
Broadcom, based out of San Jose, California, struck a deal with Apple to develop their 5G radio frequency components. One of Broadcom’s main facilities is located in Fort Collins, Colorado, and will be the manufacturing center for a component called FBAR filters. An FBAR filter is an extremely high-tech device used in products that need a high frequency, but a small size and weight.
Before the Apple-Broadcom deal even took place, some 1,100 jobs at Broadcom were directly supported by Apple needs. The two companies have been working together for years. In 2020, Broadcom sold Apple $15 billion in US-made components. This recent investment marks a new level of partnership between the two and is a great boost to American manufacturing.
New Doors For American Manufacturing
Thanks to the Chips and Science Act, which became law in 2022, there are major federal incentives for tech production on US soil. Apple’s commitment to invest over $400 billion in the US economy is slated to span the next five years. This particular promise was made in 2021, and two years later, they’re rightfully on track.
However, a majority of Apple manufacturing is still done in China. Other global sites include India and Vietnam. Hopefully, this new shift to the US will catalyze a larger move for more manufacturing stateside. And so far, it’s looking good. At the end of 2022, Apple announced they would start sourcing their chips from a factory in Arizona by 2024.
The road is likely long. So much manufacturing is being completed in China that some sources estimate it would take Apple eight years to move out just 10% of its production. Yet, considering how big Apple is, even a small sliver of production shifted to the US is a win. In all fields (sales, manufacturing, support, etc.) Apple supports over 2.7 million jobs in the US. That’s already significant, and it’s only going to grow.
Where Apple Leads, Others Follow
Apple is a giant in the tech industry. Naturally, other companies orbit around their success through supply or support. When Apple makes a big move, those companies are likely to follow.
Little by little, companies are making their way back to the US. Apple, specifically, doesn’t plan on stopping anytime soon. According to CEO Tim Cook, “…we’ll continue to deepen our investments in the US economy because we have an unshakable belief in America’s future.”
Image credit: Flickr
