**Increased Production of Apple Chips in the US: TSMC Expedites Building of Arizona Facilities**
TSMC (Taiwan Semiconductor Manufacturing Company) is accelerating the development of its second and third chip manufacturing facilities in Arizona, honoring a pledge made earlier this year. This endeavor is a part of a larger initiative to enhance the output of Apple chips within the United States, in line with the objectives of the US CHIPS Act aimed at strengthening domestic semiconductor production.
**‘Made in the USA’ Apple Chips**
Apple’s venture into manufacturing ‘Made in the USA’ chips commenced in 2022, representing a notable development in the semiconductor industry. The strategy includes the establishment of several TSMC sites in Arizona, with a segment of the production allocated to Apple’s chip requirements. Traditionally, TSMC has assigned its most advanced chip production capabilities to Taiwan, which restricted the US facilities to generating chips for older Apple products. However, new information suggests that TSMC is hastening its schedule, permitting the production of chips for devices that are roughly three generations old, as opposed to the previously estimated four to five years.
In April, TSMC initiated the construction of its third US facility, with Apple CEO Tim Cook expressing pride in being the inaugural customer for this site. A recent look into the first Arizona plant highlighted the advancements being made in this ambitious venture.
**TSMC Fast-Tracking Construction of US Facilities**
As reported by Nikkei Asia, TSMC has declared that it will accelerate the construction of its Arizona facilities by several quarters to satisfy the growing demand for smartphone and AI computing chips from US clients. TSMC Chairman and CEO C.C. Wei indicated that once completed, around 30% of the company’s 2-nanometer and more cutting-edge chip capacity will reside in Arizona, creating a leading-edge semiconductor manufacturing hub in the United States.
Initially, there were concerns regarding the importance of US chip production, as raw chips constitute only one step in the total manufacturing cycle. Apple’s chips are fundamentally assemblies of various chips that undergo a phase known as “packaging.” The initial plan included transporting US-produced chips back to Taiwan for this process, leading some analysts to doubt the practicality of the Arizona facility. However, TSMC has since vowed to create its own chip-packaging facilities in the US, with two such sites presently in the planning stages.
This tactical shift not only boosts the domestic manufacturing capabilities of Apple chips but also aids in the broader aim of diminishing reliance on foreign semiconductor production, thus fortifying the US technology supply chain.
