Apple Confirms It Will Start Making Chips In The U.S

Confirming rumors that surfaced earlier last month, CEO Tim Cook has announced that Apple will start buying chips made by TSMC in the US. The world’s largest semiconductor foundry will start making chips at its US plants in 2024. Apple is looking for ways to reduce its reliance on chips made at TSMC’s facilities in Taipei, China.

Obviously, as TSMC’s largest customer (accounting for a quarter of total annual revenue), Apple has the right to ask this chip maker to expand its lines in the US, in order to ensure the source of revenue. supply is not interrupted because of possible political instability.

According to CNBC, Tim Cook said: “Now, with the hard work of so many people, these chips can proudly be labeled Made in America. This is a very important moment.” America is looking for a way to become semiconductor self-sufficient, and making the most advanced chips on American soil is the first big step towards that.

TSMC originally planned to spend $12 billion on the plant in Arizona, which is expected to produce the first 5nm chips by 2024. Now, TSMC has decided to add a second plant at a total cost. up to 40 billion USD. The second factory will start operation in 2026. The two factories will produce 600,000 wafers per year, enough to supply the US market.

However, this is still a very small number compared to TSMC’s annual output of 12 million wafers. TSMC’s two factories will also be partially subsidized by the US government under the newly announced CHIPS Act.

Of course, these chips, after being manufactured in the US, will still be shipped to China and some other countries such as India or Vietnam to begin the assembly process of iPhone, iPad and Apple Watch products.

Reference: phonearena