Apple announces it will use U.S.-made chips in 2024. And soon the same with European chips?
According to Bloomberg’s Mark Gurman, Apple is gearing up to use chips made in the US for the next few years. CEO Tim Cook reportedly made the revelation during a meeting with engineers and sales staff in Germany, telling them that the Cupertino-based company “already made a decision to buy from the Arizona plant.”
Apple says it will use US-made chips in 2024
As Mark Gurman points out, this will further reduce Apple’s dependence on factories in Asia, especially in Taiwan, where 60% of the world’s processors are made. “Regardless of what you may feel or think, 60% of any location is not a strategic position,” Tim Cook explained.
The CEO is most likely referring to the Taiwan Semiconductor Manufacturing Co. plant currently under construction. (TSMC) in Arizona. TSMC is Apple’s exclusive chip manufacturing partner, but its customers also include NVIDIA, MediaTek, AMD, and ARM. The Arizona plant is due to start operations in 2024 with a capacity of 20,000 chips per month and 5nm fabrication capability.
According to previous reports, Apple plans to introduce TSMC’s new 3nm manufacturing process, which is the most advanced to date, for future devices. The Financial Times explains that the A17 mobile processor is being developed for the 2023 iPhone line, and this new technology will be used in mass production. No one is sure if Apple plans to use the Arizona plant only for less complex chips, or if TSMC plans to upgrade its production lines. Either way, TSMC is considering building a second plant alongside the first, at a cost of $12 billion, but a decision has yet to be made, according to Bloomberg.
As previously reported by the newspaper, TSMC has been steadily expanding to other countries in recent months to meet the needs of customers in countries that prefer production in their territory. US President Joe Biden, for example, recently signed the Chip and Science Act into law, under which the US government provides $52 billion in funds and other financial incentives to chip companies in the country.
And soon the same with European chips?
In addition to this statement about using processors made in the United States, Tim Cook also reportedly told employees, “I’m sure we’ll also be using chips from Europe when those factories become important. Bloomberg also reported some time ago that TSMC is in talks with the German government to open factories in the country. Europe, like the US, is also seeking to attract semiconductor manufacturers to build factories on the continent. The European Union’s Chip Law was passed last April to “improve its competitiveness and sustainability in the field of semiconductor technology and its applications.”