Tim Cook confirms Apple will use TMSC chips made in Arizona

After Apple supplier TSMC announced it would increase its Arizona investment, Apple CEO Tim Cook confirmed that the company would use chips built in the state.

In November, Cook made it clear that Apple will source at least some of its chip supply from the still-unfinished TSMC plant in Arizona. He reiterated the stance Tuesday at an event in Arizona, according to CNBC.

"Today is only the beginning," Cook said. "Today we're combining TSMC's expertise with the unrivaled ingenuity of American workers. We are investing in a stronger, brighter future, we are planting our seed in the Arizona desert. And at Apple, we are proud to help nurture its growth."

Taiwan Semiconductor Manufacturing Company is the largest chip foundry company in the world and commands over half of the global market share. It produces advanced processors for iPhones, iPads, and Macs.

"And now, thanks to the hard work of so many people, these chips can be proudly stamped Made in America," Cook said. "This is an incredibly significant moment."

Roughly one-third of the plant capacity in Arizona will be for Apple. The plant's previous capacity was about 20,000 wafers, each containing multiple chips.

Another report on Tuesday says that TSMC will build additional facilities in Arizona. The first plant will start production in 2024, and the supplier has already started construction of a second fab that will begin manufacturing using 3-nanometer process technology in 2026.

The US government will partially subsidize the cost of the Arizona factories. In early 2022, President Biden signed the CHIPS and Science Act into law, which includes billions of dollars in incentives for chip manufacturers to bring production to the United States.

26 Comments

freediverx 1421 comments · 16 Years

About 1 year ago

Leaked photo of Arizona chip prototype.

WilliamM 22 comments · 6 Years

Will these chips be made in Arizona, shipped to China or India or Vietnam, put into iPhones or iPads or Macs and those products then shipped to the purchaser?

Not a very environment friendly solution.

rob53 3307 comments · 13 Years

WilliamM said:

Will these chips be made in Arizona, shipped to China or India or Vietnam, put into iPhones or iPads or Macs and those products then shipped to the purchaser?

Not a very environment friendly solution.

Sounds about right. Get ready for higher costs and delays once the chips are made in America. Only way to keep these chips in the USA is for Apple to have an assembler located here which would really increase the costs and might reduce the build quality along with delays caused by lack of workforce and strikes.

blastdoor 3565 comments · 15 Years

WilliamM said:

Will these chips be made in Arizona, shipped to China or India or Vietnam, put into iPhones or iPads or Macs and those products then shipped to the purchaser?

Not a very environment friendly solution.

Based on what’s publicly known now, that seems like a reasonable guess.

But it’s not hard to imagine scenarios that are different from that, and if such scenarios were to unfold they would definitely involve facts not currently in evidence.

for example, Mexican labor is now cheaper than Chinese labor, so assembling in Mexico might make sense.

lkrupp 10521 comments · 19 Years

WilliamM said:

Will these chips be made in Arizona, shipped to China or India or Vietnam, put into iPhones or iPads or Macs and those products then shipped to the purchaser?

Not a very environment friendly solution.

When it comes to the supply chain nobody gives a rat’s ass about the environment, least of all Tim Cook. The public has been clamoring to bring the supply chain back, hopefully with jobs. It’s coming back. What’s your problem? I’m being sarcastic about this because it’s a no win, damned if you do, damned if you don’t proposition. As far as the environment goes China is bringing more coal fired power plants online to supply electricity to the factories that make the devices we in the West crave and can’t live without.