Apple & Broadcom ramp up American manufacturing with $30B AI chip partnership

00:00 Speaker A Apple is expanding its partnership with Broadcom. It's announcing a chip deal valued at more than $30 billion. It also marks Apple's largest US manufacturing commitment to date in the United States. Talk to me about why it's important for Apple and why it's important for Broadcom. 00:11 Speaker B Yeah, it's important for Apple because it's part of their American manufacturing program, right? And that's uh amp. 00:17 Speaker B Um, I don't think they did that on purpose, but why not? And it's basically, uh, something that they kicked off to have more uh manufacturing tendrils in in the US. 00:24 Speaker A I like it. 00:26 Speaker A Mhm. 00:26 Speaker B Um, also coincided with obviously the Trump administration saying, hey, everyone, build stuff in the US. Hey, Apple, build iPhone in the US. Apple said, that ain't happening. We'll do some other stuff. And so this is kind of a part of that. 00:36 Speaker B And so this 30 billion dollar deal uh has Broadcom building uh specialized chips. It seems as though it's mostly RF, kind of radio chips. Um, they say custom silicon as well. Um, and it obviously means that, you know, they're going to continue to lean on Broadcom for some of these technologies. They've, you know, pushed into the radio space for themselves. They have their own modem. Uh, and so, you know, 00:54 Speaker B this is this is just kind of I think a bit of we'll continue to see Apple uh kind of have to have third parties build certain chips, but they'll be able to do it on their own. 01:05 Speaker B Now, the flip side is they continue to invest in the US ecosystem. They've done this before with Corning, uh Global Foundries, uh companies along those lines with with businesses in the US or based in the US. Uh and so it kind of gives them a leg up, I think when it comes to the overall kind of feel with the Trump administration. 01:21 Speaker B And we really haven't heard too much going on in that space. There hasn't been the whole come on guys, you have to, you know, we're going to have a press conference and present a gift or whatever uh to the president. Uh it's been, you know, more about I think at this point, AI is the the current, you know, major topic that he's focusing on. Um, and so it appears for the moment as though Apple is kind of out of the way.