Apple To Use US-made Microchips From TSMC’s New Arizona Factory

Apple Inc. plans to start using American-made processors from the new advanced chip factory in Phoenix, Arizona operated by chip giant Taiwan Semiconductor Manufacturing Co., according to its Chief Executive Officer Tim Cook.

At an event in the factory in Arizona, which was attended by U.S. President Joe Biden, it was also announced that TSMC will invest $40 billion in the new factory, where chip companies AMD and Nvidia will also be first customers.

Cook said, “The progress we’ve made with Apple Silicon has transformed our devices. … And now, thanks to the hard work of so many people, these chips can be proudly stamped ‘Made in America.”

He also tweeted that Apple would be the site’s largest customer.

The world’s largest chipmaker said its new plant is expected to start producing 4 -nanometer or nm processors in 2024. The construction on a second factory in Phoenix will be started next year, to be ready by 2026, that will produce 3nm chips, the smallest and most complex processors currently available.

TSMC expects the two factories in Arizona to produce more than 600,000 wafers annually by 2026, which, according to White House officials, will be enough to meet the entire US demand for advanced chips.

TSMC reportedly plans to produce 2nm chips by 2025 in its overseas facilities mainly in Taiwan.

At present, TSMC produces the most advanced processors, including the chips in Apple’s latest iPhones, iPads and Macs.

However, Apple has been struggling with issues in supply chain and the chip shortage amid the pandemic, which are said to have caused the tech major $6 billion in sales. The company recently announcced plans to buy more chips from Europe and US semiconductor fabrication plants to meet supply issues.

TSMC’s factories in Arizona will be partially subsidized by the U.S. Government as per the CHIPS and Science Act, signed by Biden in August, which is a legislative package that contains $52 billion for domestic chip production.

Biden said at the event, “These chips will power iPhones and MacBooks, as Tim Cook can attest. Apple had to buy all the advanced chips from overseas. Now we’re going to do more of their supply chain here at home.”

Along with Biden and Cook, TSMC’s “tool-in” ceremony, marking the arrival of production equipment to the first facility, was attended by TSMC founder Morris Chang and NVIDIA CEO Jensen Huang, who said TSMC’s investment to the U. S. is a masterstroke and a game changing development for the industry.

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