CEO Tim Cook confirmed on Tuesday that Apple use chips from a factory in the U.S. in the coming years – as it diversifies where it gets this crucial component that’s primarily produced in Asia.
‘And now, thanks to the hard work of so many people, these chips can be proudly stamped Made in America,’ Cook said at an event in Arizona where President Biden also spoke. ‘This is an incredibly significant moment.’
The factories will be owned and operated by Taiwan Semiconductor Manufacturing Company, which is the world’s largest chip-maker with a roughly 50% market share. Apple has been gradually moving away from China amidst supply chain problems brought on by the Covid pandemic.
‘Today is only the beginning,’ Cook said. ‘Today we’re combining TSMC’s expertise with the unrivaled ingenuity of American workers. We are investing in a stronger brighter future, we are planting our seed in the Arizona desert. And at Apple, we are proud to help nurture its growth.’
Apple use chips from a factory in the U.S. in the coming years – as it diversifies where it gets this crucial component that’s primarily produced in Asia
Three weeks ago, Cook told engineering and retail employees in Germany that Apple ‘already made a decision to be buying out of a plant in Arizona,’ according to Bloomberg.
‘Regardless of what you may feel and think, 60 percent coming out of anywhere is probably not a strategic position,’ Cook added.
TSMC is Apple’s exclusive chip-making partner, but it also works with a few other suppliers. The chip-maker is considering building other chip factories in Arizona.
‘I’m sure that we will also source from Europe as those plans become more apparent,’ Cook also said to the gathered employees.
Apple plans to use TSMC’s new 3-nanometer chipmaking process for its future devices.
The nanometer size is in reference to the distance between transistors on a chip – the smaller the number, the more transistors that can be put onto the chip. A higher number of transistors makes for a more powerful the chip.
Chipmakers like TCSM and Samsung are racing to roll out more advanced chips like the 3-nm – as the technology has applications for smartphones, computers and other devices.
The Financial Times reports that 2023 might be the second year in a row that Apple uses TSMC’s most advanced tech only for part of its smartphone lineup.
This year, the premium iPhone 14 Pro contained the A16 core processor, but the standard ones use the older A15 that was inside the company’s models released in 2021.
Under the CHIPS and Science Act signed into law by President Joe Biden, the U.S. is offering $52 billion in funding and incentives for firms building chips in the country.
Chipmakers like TCSM and Samsung are racing to roll out more advanced chips like the 3-nm – as the technology has applications for smartphones, computers and other devices
Chipmakers like TCSM and Samsung are racing to roll out more advanced chips like the 3-nm – as the technology has applications for smartphones, computers and other devices
