According to Mark Gurman of Bloomberg, Apple is getting ready to buy chips from a US plant in the coming years. As Gurman points out, it would lessen Apple’s reliance on factories in Asia, particularly Taiwan, where 60% of the world’s processor is produced. Company CEO Tim Cook reportedly made the revelation during a meeting with local engineering and retail employees in Germany, telling them that Apple “already made a decision to be buying out of a plant in Arizona.” Despite how you might feel and think, Cook continued, “60 percent coming out of wherever is definitely not a strategic position.” Apple plans to use US-made chips
The Arizona facility of Taiwan Semiconductor Manufacturing Co., which is now under development, is most likely the subject of the CEO’s remarks. Though it serves NVIDIA, MediaTek, AMD, and ARM as some of its clients, TSMC is Apple’s exclusive chipmaking partner. The Arizona facility will be able to manufacture 5-nanometer CPUs and create 20,000 chips per month when it begins operating in 2024.
Apple is reportedly planning to use TSMC’s newest and most sophisticated 3-nanometer chipmaking technology for the following products. According to The Financial Times, the latest technology will be used to mass build the A17 mobile CPU Apple is presently developing for its 2023 iPhone range. However, it’s unknown whether TSMC wants to modernize the factory or if Apple solely intends to use the Arizona plant for older, less advanced processors. TSMC told Bloomberg that while it is actively considering adding a second factory to its $12 billion Arizona project, it has not yet made a final decision.
TSMC has been growing internationally during the last year, as the journal has reported, to fulfill the demands of clients in nations that support domestic semiconductor manufacture. For instance, the CHIPS and Science Act was just approved by the president, Joe Biden. The US government is providing $52 billion in cash and incentives to businesses that produce chips due to the new law.
While that’s all Cook disclosed during the meeting, Bloomberg earlier reported that TSMC is in discussions with the German government to build facilities in the nation. Cook also allegedly said to staff members: “I’m confident that we will also source from Europe as those plans become more evident.” In addition, the EU Chips Act was enacted in April to “bolster [its] competitiveness and resilience in semiconductor technology and applications,” as Europe, like the US, sought to encourage semiconductor firms to construct operations in the area. Apple plans to use US-made chips