Apple wants to become less dependent on Asian supply chains – especially in chip production. TSMC has now begun construction of its third US chip factory in Arizona. Apple is the first and most important customer. CEO Tim Cook describes the move as an important step forward for the American technology industry.
For years, Apple has relied on its own chips to optimize the performance and efficiency of its devices. These chips, whether in iPhones, Macs, or iPads, largely come from Taiwan—the home country of TSMC, Apple's main chip manufacturer. But with growing geopolitical pressure and the lessons of global supply shortages, Apple plans to relocate parts of its production to the United States. The new TSMC factory in Arizona is part of this plan.
TSMC starts construction of third chip factory in Arizona
TSMC has begun construction of its third chip factory in Arizona. The U.S. Department of Commerce confirmed the official groundbreaking. TSMC Chairman Dr. CC Wei stated that this facility represents the largest single foreign direct investment in U.S. history. Tim Cook was not present at the groundbreaking ceremony, but made his statement clear:
Apple is thrilled to be the first customer of the new facilities. The company is proud to support high-skilled jobs in the United States and looks forward to the future opportunities that come with U.S. manufacturing.
Apple remains TSMC's most important customer in the US
Apple had already announced in 2022 that it would also manufacture chips in the USA in the future. TSMC's factories in Arizona are part of the so-called CHIPS Act, with which the US government aims to massively promote semiconductor production in the country. Apple is considered a model company in this context. The collaboration with TSMC in the USA initially covers chips for older Apple devices. The reason for this is that TSMC currently only uses its most modern manufacturing technologies in Taiwan. The US factories are currently designed for chip generations that are approximately three to five years old. However, TSMC has announced that it will increase the pace of development. In the future, it should be possible to produce chips that are only about three generations behind the latest technology (via US Department of Commerce).
Further partners: NVIDIA and AMD also join
Apple isn't the only one relying on chips "Made in the USA." NVIDIA and AMD have also announced their intention to source products from TSMC's Arizona factories in the future. This makes the location decision even more economical – because the more customers use the production capacity, the more profitable the expansion becomes. TSMC plans to open three additional chip factories in the USA in the long term, as well as two chip packaging facilities. The goal is to be able to replicate entire production cycles for certain processors in the United States. For Apple, this means that older chips could be manufactured entirely in the USA – from wafer to finished component. The latest A and M chips, however, will continue to be produced in Taiwan.
More chips from the USA: Apple relies on domestic production
With the construction of the third TSMC factory in Arizona, Apple is sending a clear signal: US chip production is being taken more seriously than ever before. Even if only older processors are initially affected, the project represents an important step toward regional independence. Apple remains the most important customer of this initiative, thus strengthening not only its own supply chain but also the US as a manufacturing location. This is a positive sign for the technology market – more capacity, more security, more innovation in the country. (Image: Shutterstock / IM Imagery)
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