Apple to buy US-made chips from TSMC: Tim Cook

During an internal meeting held in Germany with Apple employees, Apple CEO Tim Cook made it clear that the company will source some of its chip supply from an unfinished TSMC plant in Arizona. He also said that chip order might expand to plants in Europe as well. Apple Services chief Eddy Cue and Head of People Deirdre O’Brien were also present in the meeting.

In a meeting, Tim cook said:

“We’ve already made a decision to be buying out of a plant in Arizona, and this plant in Arizona starts up in ’24, so we’ve got about two years ahead of us on that one, maybe a little less. “In Europe, I’m sure that we will also source from Europe as those plans become more apparent.”
Construction of the TSMC chip fabrication plant in Arizona was initiated in June 2021. Initially, the company foresaw to kick start production in September 2022 but this timeline was extended to six more months. Now, the TSMC plant is expected to go online in March 2023 and its production will kick start in early 2024.

 

The labor pool is also a big issue in Arizona since Intel already employs 12,000 people and is currently hiring 3,000 more employees while expanding facilities. While extracting talent for its plants, TSMC will have to compete in a region that has a low unemployment ratio.

Right now it is not clear whether Apple will buy TSMC and what they are specifically going to manufacture there. However, Apple still demands for A-series chips that were manufactured four years back so might be possible the process gets initiated with those chips. Another issue that can be seen is the shipping of chips from TSMC Arizona to China or India where the iPhone production will take place.

Also Read: Apple Faces Lawsuit For Tracking User Activity Even with Settings Turned off

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Fizza Atique

Fizza Atique is a Tech writer specializing in the intersection of tech and culture. She likes photography, VR, electronic music, coffee, and baking.

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