Apple is Said to Be Planning to Use US-made Chips Beginning in 2024

Apple is Said to Be Planning to Use US-made Chips Beginning in 2024

According to Bloomberg's Mark Gurman, Apple is planning to source chips from a US factory within the next few years. During a meeting with local engineering and retail employees in Germany, Apple CEO Tim Cook reportedly revealed that Apple already made a decision to buy out of a plant in Arizona. As Gurman points out, it would reduce Apple's reliance on Asian factories, particularly Taiwan, which produces 60% of the world's processors. Regardless of your feelings and thoughts, 60 percent coming out of anywhere is probably not a strategic position, Cook added.

Most likely, the CEO is referring to Taiwan Semiconductor Manufacturing Co.'s Arizona plant, which is currently under construction. TSMC is Apple's sole chip-making partner, though it also has customers such as NVIDIA, MediaTek, AMD, and ARM. The Arizona plant is scheduled to open in 2024, with a monthly output of 20,000 chips and the ability to produce 5-nanometer processors.

According to previous reports, Apple intends to use TSMC's latest and most advanced 3-nanometer chipmaking process for future devices. According to the Financial Times, Apple's A17 mobile processor, which is currently being developed for its 2023 iPhone lineup, will be mass produced using the new technology.

It's unclear whether Apple intends to use the Arizona plant only for older and less sophisticated chips, or if TSMC intends to upgrade the facility. TSMC is already considering building a second plant next to its $12 billion facility in Arizona, but it has not made a final decision, according to Bloomberg.

As previously reported by the publication, TSMC has been expanding into other countries over the last year in an effort to meet the needs of customers in countries that encourage domestic semiconductor production. For example, President Joe Biden recently signed the CHIPS and Science Act into law. Under the new law, the US government will provide $52 billion in funding and incentives to companies that manufacture chips in the country.

In addition to revealing that Apple will begin sourcing US-made processors, Cook is said to have told employees, "I'm sure we'll also source from Europe as those plans become more apparent." While that was all he said at the meeting, Bloomberg previously reported that TSMC is in talks with the German government about opening a facility there.

Europe, like the United States, is looking to entice semiconductor manufacturers to set up shop in the region, and in April introduced the EU Chips Act to bolster competitiveness and resilience in semiconductor technologies and applications.

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Jessica Vieira
Jessica Vieira
Jessica Vieira is ProductReviews's senior media reporter, covering the intersection of entertainment and technology.