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by GeekyBear 1951 days ago
Apple's usual way of doing business with Tim Cook running the supply chain is to buy a supplier a manufacturing line in return for guaranteed production levels on exactly the part they want.

This is the first case of this in action that I can remember.

>CUPERTINO, California—November 21, 2005—Apple® today announced that it has reached long-term supply agreements with Hynix, Intel, Micron, Samsung Electronics and Toshiba to secure the supply of NAND flash memory through 2010. As part of these agreements, Apple intends to prepay a total of $1.25 billion for flash memory components during the next three months.

https://www.apple.com/newsroom/2005/11/21Apple-Announces-Lon...

Here's a more recent example.

>(Reuters) - Apple Inc on Tuesday said it would award Corning Inc $250 million from a $5 billion fund dedicated to U.S. advanced manufacturing.

In the past, Apple has made long-term supply agreements here with its vendors in which it provides upfront cash to lock in supplies of parts and better prices.

https://www.reuters.com/article/us-apple-corning/apple-award...