Apple wants to become less dependent on Asia and manufacture more chips directly in the US in the future. Its key partner is TSMC, the world's leading chip manufacturer from Taiwan. Production on US soil is part of a larger political initiative, the US CHIPS Act. But although the project has received a lot of attention, not everything is going as planned. Here's how far Apple and TSMC really are, what's going wrong, and why progress is being made nonetheless.
In 2022, Apple announced its intention to use chips "Made in America" in the future. TSMC was to build several factories in Arizona for this purpose. The whole process was celebrated as a milestone – by both Apple and the US government. The idea: technological sovereignty, less dependence on Asia, and more US jobs. A lot has happened since then. Expectations are high, the reality more complicated.
TSMC's first chip factory in the USA: Delayed start
TSMC's first chip factory in the US was originally scheduled to begin mass production in 2024. But the launch was postponed to 2025. Construction of the factory took a total of five years—significantly longer than expected. This means the factory is no longer able to supply chips for current Apple devices. Only older processes can be used in this first factory. Specifically, this means that the A16 chip, originally used in the iPhone 14 Pro, is manufactured there. This model is no longer in production. The chip is currently still in the base model of the iPhone 15, which is likely to be sold in smaller quantities. This means that current production has little strategic value for Apple.
Doubts about the US chip strategy
Criticism wasn't just about the delays. Another problem: TSMC flew in many skilled workers from Taiwan because there apparently aren't enough qualified workers in the US. This raised questions about the promised job creation. The media even spoke of "anti-American discrimination." In addition, building high-end factories in the US is very expensive. Despite this, TSMC recently announced additional investments of $100 billion. This, too, was viewed critically. Many question whether the money is being used efficiently if the factories are constantly lagging behind technologically.
TSMC promises faster processes
According to a report by Nikkei Asia, TSMC has now responded to the criticism. The company emphasizes that the slow start in Arizona was an isolated incident. Future factories in the US are to be built much faster – within two years instead of five. This would mean that a factory with 3nm technology would come online in 2028. Another plant with 2nm technology is scheduled to start production "before 2030." Nevertheless, it is clear: the US factories lag behind the most modern TSMC factories in Taiwan. The latest Apple chips – for example, for upcoming iPhones – will continue to be produced in Asia. The US factories will primarily supply older chip generations. At least this could narrow the gap. Apple would be somewhat more independent without completely abandoning Taiwan.
Former Intel boss is skeptical
One of the most prominent critics is Pat Gelsinger, the former CEO of Intel. He is skeptical of TSMC's US investments. For him, it's clear: As long as research and development (R&D) doesn't take place in the US, the US chip industry will not be competitive. TSMC, however, continues to conduct all of its R&D in Taiwan. Gelsinger emphasizes that true innovation can only emerge where development also takes place. And TSMC has so far shown no signs of relocating R&D from Taiwan. The company considers its home base crucial to maintaining control over its cutting-edge technology (via Nikkei Asia).
Made in America: No revolution yet for Apple chips
Apple will indeed use chips from the USA in the coming years – but primarily for older devices. A major breakthrough is still elusive. Chip production in Arizona is an important symbolic step, but not a technological breakthrough. If TSMC keeps its promise and truly completes the new factories faster, this could change in the medium term. For you, this means: An iPhone with a chip "Made in America" will soon be a reality – at least in the cheaper models. Apple's most powerful devices will remain dependent on Taiwan for the time being. (Photo by Unsplash+ / Kamran Abdullayev)
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