FirstFT: multi-billion dollar chip deal | Financial Times

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Good morning. Apple and Broadcom have reached a “multibillion-dollar” deal. for the chip company to supply US-made 5G components to the iPhone maker, as part of Apple’s push to source more parts from American facilities.

Apple said the partnership, focused on 5G radio-frequency components and building on its existing relationship with Broadcom, was part of its 2021 commitment to spend $430 billion with U.S. suppliers and manufacturers over five years. Broadcom confirmed in a regulatory filing that it has entered into two “multi-year statements of work” for the supply of high-performance radio frequency and wireless components to Apple.

Apple typically reveals very little about the suppliers it works with, but the tech group has recently come under scrutiny for its reliance on Chinese manufacturers and components at a time when deteriorating US-China relations threaten to leave silicon companies behind. Valley as collateral damage.

Here’s what else I’m watching today:

• Albanian-Modi talks: Australian Prime Minister Anthony Albanese will host his Indian counterpart Narendra Modi.

• UK inflation: April consumer price index retail price index and producer price index inflation rate data will be released. The data is likely to show that food is becoming a more important factor than energy driving high inflation.

• Nvidia Earnings: The AI ​​craze has sent Nvidia’s stock price skyrocketing. Its graphics processing units are the primary workhorses for training large language models, so there will be plenty of interest in today’s earnings call.

Who will win the US-China tech war? Join FT and Nikkei Asia reporters for a webinar reserved for subscribers this Thursday and ask your questions to the panel.

Five more top stories

1. White House and Republican lawmakers struggled to make progress towards a deal to raise the US debt limit today, with conversations showing no signs of turning, they just engage in continuing the conversations. Read more about why this is leaving the economy and financial markets in dangerous limbo.

2. Beijing must provide more regulatory certainty on data security and other issues to help restore foreign investor confidence, the British Chamber of Commerce in China warned. Here’s what else we learned from group poll last month.

3. Exclusive: TikTok has restructured its ecommerce business to refocus on certain markets. Staff in Brazil who were working on the TikTok Shop launch were relocated to markets where the service is already being introduced. Read more about ByteDance’s proprietary platform plans.

4. China is concerned that new Japanese export controls could hurt the country’s chip industry. The new rules may be more restrictive even than that of the United States and it would make it difficult for China to produce the most basic chips found in household products.

5. Microsoft has launched new tools for developers to integrate generative AI into their business software, as Big Tech scrambles to commercialize the fledgling technology. The move by the US technology group is focused on the so-called “plug-ins”. Read the full story.

In-depth news

The Jain brothers, owners of the Times of India, have sought a separation and the proposed breakup plan has proved controversial within the family and beyond. These governance issues have a broader meaning to those who believe so India’s economic future it depends in part on the smart management of family-owned companies like the Times Group.

We are also reading. . .

• Fishing fight: The Chinese fishing fleet emerged as a new geopolitical hotbed between Washington and Beijing as experts warn of increasingly acute tensions.

• Artificial intelligence: Building AI safely and responsibly it’s not something a company can do on its ownwrites Google chief Sundar Pichai.

• Tanks, Vodka, Feminism: FT’s Laura Pitel went on road trip with German Foreign Minister to tell Annalena Baerbock’s story political comeback.

Chart of the day

The price of copper has dropped 11% in one month at nearly $8,000 per ton, its lowest level since November, in part because China hasn’t grown as fast as expected since it lifted its tough coronavirus restrictions late last year.

Take a break from the news

FT readers rate the best breakfasts – and coffee – in Melbourne. Don’t miss this FT Globetrotter guide which will definitely make your mouth water.

Additional contributions by David Hindley and Tee Zhuo