Apple, on Tuesday, revealed a substantial new arrangement with Broadcom, a pioneer in technology and advanced manufacturing, to create components for 5G radio frequency in the United States.

"Delighted to make these pledges that leverage the cleverness, originality, and inventive spirit of American manufacturing," expressed Apple's CEO, Tim Cook.

The announcement resulted in a near 3% increase in Broadcom's shares by Tuesday morning. Apple, however, witnessed a less than 1% decrease in its shares.

The 5G radio components to be produced by Broadcom will encompass Film Bulk Acoustic Resonators (FBAR) filters and other parts essential for wireless connectivity. It's worth noting that these parts are distinct from the 5G modems manufactured by Qualcomm.

Apple's significant agreement with Broadcom is in line with its 2021 pledge to infuse $430 billion into the American economy. This agreement symbolizes the latest progression in the ongoing collaboration between the two tech giants. In 2020, Broadcom stated it would sell $15 billion worth of wireless components to Apple.

Moreover, this agreement with Broadcom will enable Apple to channel investments into vital automation projects and skill enhancement for engineers and other technicians. Apple already maintains support for over 1,100 jobs at Broadcom's FBAR filter production facility in Fort Collins, as per the announcement.