Apple’s quest to make more of its silicon stateside just got a major boost. Taiwan Semiconductor Manufacturing Company (TSMC), the chipmaking giant behind Apple’s A- and M-series processors, has officially kicked off construction on its third fabrication plant in Phoenix, Arizona. Yep, a third one. And Apple’s right at the heart of it.
Made in America, with a Taiwanese twist
This latest facility is part of a massive $100 billion investment TSMC pledged earlier this year to expand chip production in the U.S. It adds to the $65 billion they already poured into the region, with the long-term goal of bringing more of the semiconductor supply chain back to American soil.
Cook’s American Dream
Apple CEO Tim Cook chimed in with some classic corporate optimism, calling it a win for American innovation. In a press release by the Department of Commerce, Cook said:
We’re proud to support the high-skilled American jobs of tomorrow. As TSMC Arizona’s first and largest customer, we’re excited for the future of American innovation and the incredible opportunities it will create.
In plain speak: Apple wants to future-proof its chip supply, get closer to home, and avoid the geopolitical risks that come with relying heavily on Taiwan.
Related: Tim Cook Hints iPhones Could Be Made in USA, But with Robotic Automation
What Kind of Chips Are We Talking About?
Before you get too excited, let’s be clear, the cutting-edge chips like the A18 or M4 aren’t coming out of these U.S. fabs just yet. Due to export policies and tech limitations, TSMC’s most advanced 3nm processes are still exclusive to Taiwan.
Instead, the Arizona facilities will focus on producing chips like the A16 Bionic (used in the iPhone 15) and S9 (in the Apple Watch Ultra 2), which are made using a 4nm process. So yeah, these fabs are still relevant, just not bleeding edge.
Still, progress is progress. According to TSMC CEO Dr. C.C. Wei, the first Arizona plant has finally hit Taiwan-level production yields, and the second plant (announced in 2022) is ramping up fast. The third fab? No timeline just yet, but the groundwork is laid.
Related: Apple Set to Use 1.4nm Chips Announced by TSMC For A 2028 Release
What’s the Big Picture?
Apple’s involvement shows that it’s not just talking the talk about American manufacturing, it’s walking the walk. Between rising demand, global chip shortages, and the unpredictable state of international politics, localizing chip production is quickly becoming a strategic must.
It also plays into the larger trend of “silicon nationalism,” where tech companies want more control over their hardware supply chains without relying too much on offshore partners.
Whether these Arizona fabs eventually catch up to the cutting edge remains to be seen, but for now, they’re laying the foundation (literally) for something much bigger.
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