Apple closes billion dollar 5G deal with Broadcom

The deal was announced Tuesday and Broadcom is developing 5G radio frequency components, including FBAR filters and other “advanced wireless connectivity components.”

A Film Bulk Acoustic Resonator (FBAR) filter is a bulk acoustic wave filter that can help reduce noise and separate signal bands. The technology could help reduce signal issues and generally improve connectivity over 5G.

While Apple already partners with Broadcom to manufacture FBAR filters at a facility in Fort Collins, Colorado that employs more than 1,100 people, the investment will further augment efforts. This includes designing and building the FBAR filters in several major US manufacturing and technology hubs.

The deal also allows Broadcom to invest in “critical automation projects and upskilling of technicians and engineers,” a statement said.

Apple’s announcement leans heavily on this being a U.S. manufacturing story, with Apple CEO Tim Cook stating, “We’re excited to make commitments that leverage the ingenuity, creativity, and innovative spirit of U.S. manufacturing. All of Apple’s products depend on of technology developed and built right here in the United States, and we will continue to deepen our investment in the American economy because we have an unwavering belief in America’s future.”

The deal is part of a commitment Apple made in 2021 to invest $430 billion in the US economy over five years. With the new agreement, Apple is on track to meet the goal, in addition to direct spending with U.S. suppliers, data center investments, and other capital expenditures.

It’s likely the deal will have some impact on the development of Apple’s own 5G modem, which previously received a boost in 2019 when Apple acquired Intel’s smartphone modem business.

Broadcom is a long-time partner of Apple and has previously negotiated numerous deals for wireless components, including RF chips.

However, a January report claimed that Apple planned to drop a Broadcom component in 2025, specifically elements related to Wi-Fi and Bluetooth functionality. If this is true, the filter deal keeps the working relationship alive, albeit while other changes take place.