Apple’s collaboration with Broadcom signals a major step towards developing proprietary 5G technology and reducing reliance on external suppliers.
Apple Inc has made significant progress in its plans to develop in-house 5G modems, as it has entered a “multibillion-dollar” agreement with Broadcom to manufacture components for 5G and other wireless connectivity solutions. This strategic deal includes the production of these components in US facilities, with a particular focus on Broadcom’s manufacturing base in Fort Collins, Colorado.
Although specific details about the products that will incorporate the 5G technology were not disclosed, the agreement suggests that Apple’s transition to in-house 5G modems is well underway. After acquiring the majority of Intel’s phone modem business in 2019, Apple embarked on its own 5G modem development, signaling a desire to become less dependent on external suppliers. To support this initiative, Apple has recruited 5G developers and established offices in key technology hubs like San Diego and Munich.
While Apple’s 5G modems are rumored to debut in shipping products by late 2024 or early 2025, neither Apple nor Broadcom have officially confirmed the timeline. However, Qualcomm, a major supplier of cellular modems, has already expressed the assumption that it will not provide iPhone modems in 2024, which could potentially impact Qualcomm’s financial performance as Apple is one of its largest customers. This shift in modem suppliers may compel Qualcomm to rely more on Android phone manufacturers and diversify its product offerings.
Apple’s move towards in-house modems aligns with its historical strategy of reducing reliance on third-party components. Notably, Apple began using its own CPUs with the A4-based iPad in 2010. By developing proprietary 5G modems, Apple can exert greater control over its hardware release schedule and potentially avoid costly patent disputes. Moreover, Apple may achieve a technological advantage by optimizing the 5G modems exclusively for its devices, enhancing overall performance and user experience.
With the collaboration between Apple and Broadcom, the landscape of wireless connectivity in Apple products is set to undergo a significant transformation. By leveraging Broadcom’s expertise and US-based manufacturing capabilities, Apple is positioning itself to drive innovation in the 5G technology space and reinforce its commitment to in-house chip development.
Furthermore, Apple’s partnership with Broadcom represents a strategic effort to boost domestic production and strengthen the US manufacturing sector. By selecting a reputable technology and advanced manufacturing company like Broadcom, Apple aims to support the US economy while reducing its dependence on foreign-made components.
The “multibillion-dollar” deal with Broadcom aligns with Apple’s broader commitment to bringing more manufacturing jobs back to the United States. The agreement is expected to create thousands of jobs in American facilities, including Broadcom’s Fort Collins plant. This move not only bolsters local employment opportunities but also contributes to Apple’s goal of investing $430 billion in the US economy over a five-year period, as previously announced in 2021.
In a statement, Apple CEO Tim Cook expressed enthusiasm for the collaboration, emphasizing the company’s dedication to American manufacturing and its belief in the future of the United States. By harnessing the ingenuity and innovative spirit of American manufacturing, Apple aims to further enhance the quality and reliability of its products, ensuring that technology is engineered and built domestically.
The deal’s focus on 5G radio frequency components, such as FBAR filters, highlights Apple’s commitment to staying at the forefront of wireless connectivity. These components play a crucial role in partitioning frequency bands and capturing stronger and more reliable signals, ultimately enhancing the performance of Apple devices.
As Apple’s long-standing partnership with Broadcom deepens, the two companies are poised to shape the future of wireless technology together. This collaboration not only strengthens Broadcom’s position in the market but also positions Apple as a key player in the development of cutting-edge wireless connectivity solutions.
The completion of the deal by the end of the year is expected to mark a significant milestone in Apple’s quest for greater self-reliance in chip manufacturing. As the industry eagerly awaits the arrival of Apple’s in-house 5G modems, this strategic partnership with Broadcom paves the way for a new era of innovation, technological advancements, and economic growth within the United States.