Apple Inc. will buy billions of dollars’ worth of wireless networking components from Broadcom Inc., a longtime supplier, through a new agreement the companies announced today.

The deal is set to run for several years. It will see Broadcom design and produce multiple types of wireless components for Apple, including modules that can be used to power 5G network connections. The iPhone lineup has supported 5G since 2020.

Broadcom will supply Apple with, among other products, tiny modules called FBAR filters that handsets use to block radio interference from other devices. Some of Broadcom’s FBAR filters have a surface area of less than one square millimeter. By blocking interference, the modules help improve the quality of wireless connections.

Broadcom will manufacture the FBAR filters that Apple has ordered at a plant it operates in Fort Collins, Colorado. The iPhone maker says its component purchases already help support more than 1,100 jobs at the facility. Following the investment announced today, Broadcom will invest in new automation technologies and employee upskilling initiatives to enhance its manufacturing capabilities.

“All of Apple’s products depend on technology engineered and built here in the United States, and we’ll continue to deepen our investments in the U.S. economy,” said Apple Chief Executive Officer Tim Cook.

Apple is one of Broadcom’s largest customers. The iPhone maker accounted for about 20% of the $33.2 billion in revenue that Broadcom reported last year. Broadcom supplies Apple with not only FBAR filters, but also other components that its iPhones use to establish wireless connections.

The supply agreement announced by the companies today comes a few months after Bloomberg reported that Apple plans to reduce its reliance on the chipmaker. In particular, the iPhone maker reportedly intends to replace a Broadcom-developed chip that powers its handsets’ Wi-Fi and Bluetooth features. According to Bloomberg, the iPhone maker hopes to switch to an internally designed alternative as soon as 2025.

In the long term, Apple is reportedly also seeking to replace the iPhones’ 5G modem chips, which are currently supplied by Qualcomm Inc. Reports that the iPhone maker is developing an in-house 5G chip first emerged in 2020. A year earlier, Apple bought Intel Corp.’s mobile modem business for $1 billion.

According to the iPhone maker, its new deal with Broadcom is part of a previously announced plan to invest $430 billion in the U.S. economy over five years. Apple says that it supports more than 2.7 million jobs in the U.S. through direct employment, the iOS app ecosystem and its supply chain spending.

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