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Apple is preparing to begin sourcing chips for its devices from a plant under construction in Arizona in the United States. Apple's decision to buy processors manufactured in the US would represent a significant diversification in its supply chain away from Taiwan.
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Apple currently sources all of its processors from factories in Taiwan. It designs its own chips and Taiwan Semiconductor Manufacturing Company manufactures the A-series and M-series processors that power iPhones and Mac computers.
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TSMC previously announced plans for a single factory in Arizona to open in 2024 focusing on chips that use the latest manufacturing technology. TSMC said earlier this month that it is planning a second chip factory in Arizona because of “strong customer demand.” Intel also operates chip foundries in Arizona and has said it wants to win Apple’s business for its new foundry division that manufactures other companies’ chips.
Why it matters
Apple does the vast majority of its final assembly for iPhones and other devices on China’s mainland, but it sources parts from many different countries, including the U.S. and Taiwan. Cook reportedly said that Apple was considering buying chips from factories in Europe, too. The United States has been encouraging foreign tech firms to manufacture in the country and has actively supported local research, development and manufacturing after passing its CHIPS Act.
