Apple CEO Tim Cook has revealed that the company will be buying chips from TSMC manufactured at the upcoming factory in Phoenix, Arizona. This means that future Apple products will use chips made in the United States.
At an event in Arizona, Tim 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 had to buy all the advanced chips from overseas, now they’re going to bring more of their supply chain home. It could be a game-changer.”
While Tim Cook hasn’t revealed the timeline for the availability of devices powered by US-made chips, it’s safe to assume that the chips, manufactured using the 4nm and 3nm process, will be powering the next generation of iPhones, Macs, and other products from the brand in a couple of years.
TSMC factory in Phoenix is expected to start production of chips in the year 2024, and the company is planning to open up another plan in 2026. The combined production of chipsets at these two plants will account for around 600,000 chip wafers per year.
The Taiwan-based manufacturer is spending about $40 billion to set up two factories in the United States, but the amount will partly be subsidized by eh United States government under the CHIPS and Science Act which aims to attract semiconductor manufacturing to the US.
Currently, TSMC does most of its manufacturing in Taiwan, but because of the recent geo-political events, US and European companies, as well as lawmakers, are concerned about supply issues in the event of a Chinese invasion or other regional issues.
Along with TSMC, Intel is also building factories in Arizona and Ohio, which the company plans to set up as a foundry for other companies looking for help with chip production. It has also expressed interest in manufacturing components for Apple.