at a time when washington is trying to reduce its reliance on foreign made chips. my colleague samir hussein reports. the 56 chips apple is buying from broadcom will be designed and built in the us. it is the latest business deal between the two companies. in 2020, broadcom said it would sell $15 billion of wireless components to apple. the deal fits the brief apple set out for it self to invest more in the us economy. it also goes hand in hand with a push to get more us companies to use domestically made microchips. the supply chain disruptions during the pandemic triggered a semiconductor shortage which showed just how reliant us companies had become on chips made overseas, specifically in china and taiwan. which many us officials see as a national security concern. since then, the us has been privatising domestic production of semiconductors is advised to wean firms from relying on foreign chip makers. last summer, us presidentjoe biden signed an act that drew billions of
the us has been privatising domestic production of semiconductors is advised to wean firms from relying on foreign chip makers. last summer, us presidentjoe biden signed an act that drew billions of dollars in subsidies and tax dollars to help the domestic chip making business. staying on the topic of chips, the us top democrats say that by station is acknowledging its allies and businesses to address china s back ban on sales of memory chips by american manufacturers micron. beijing has accused the firm of filing a security firm. this meant operations of key infrastructure would not be able to buy chips from the company. earlier i spoke to ray wine of consolation research and he explained the impact this would have on micron. micron doesn t have that much of a share inside china but main point the is we are in a titfor main point the is we are in a tit for tat war that basically
the cac, the cyberspace administration in china is saying we have seen some security risks, but we coloured claim what they are. we are about to get a tap on the us side when the smt, a leading maker of other chips in china, which would be the biggest beneficiary of micron pulls out of china, we are seeing mike gallagher come in and say, we should actually be restricting them as well. so now we have this tit for tat on chips. we are trying to de escalate. the idea is to drive down the tension so we don t continue with a chip war and hopefully we will make progress but right now this is a sideshow in the middle of these negotiations. there have been reports that alibaba cloud has started downsizing which will impact some of the land star. the move comes as the company prepares for an ipo. it is part of the l announcement to restructure to six units following a two year track crack down on the tech sector in china.