Tech giants are having trouble supplying due to the US embargo on China. According to Bloomberg’s Mark Gurman, Apple will procure chips from a factory operating in the USA in the next few years.
Apple will supply chips from the factory that manufactures in the USA
It has been announced that company CEO Tim Cook talked about his new plans during a meeting with engineering and retail employees in Germany. According to the leaked information, Tim Cook said, “We will purchase chips from a factory in Arizona. Regardless, it’s not strategically healthy to be 60 percent dependent on any one place. I am sure that we will get resources from Europe as these plans become more evident.”
Cook is believed to be referring to Taiwan Semiconductor Manufacturing Co.’s (TSMC) Arizona facility, which is currently under construction. The Arizona factory is expected to start operating in 2024, with production of 20,000 chips per month and the ability to produce 5 nanometer processors.
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According to previous reports, Apple plans to adopt TSMC’s newest and most advanced new 3 nanometer chip making process for future devices. Sources close to the company state that the A17 mobile processor, which Apple is currently developing for the iPhone series, which will be released in 2023, will be produced using new technology.
It’s unclear whether Apple will use its Arizona facility only for older and less advanced chips, or if TSMC plans to update the factory. TSMC is already considering building a second facility next to its $12 billion facility in Arizona, but no final decision has yet been made to Bloomberg.
As Apple’s custom chip supplier, TSMC’s customers include NVIDIA, MediaTek, AMD and ARM. It is estimated that other US-based companies will also supply chips through the Arizona facility.
TSMC has started to invest in other countries for some time in order to meet the needs of customers in countries that promote domestic semiconductor production. For example, President Joe Biden recently enacted the CHIPS and Science Act. Under the new law, the US government offers $52 billion in funds and incentives to chip-producing companies in the country.