TSMC is an exclusive chip provider for Apple. They are known to produce the chips used in Macs and iPhones in Asia. A new report suggests that the iPhone-maker wants to diversify a portion of it by sourcing the future silicon from a new factory in the USA. The move could result in Apple receiving incentives from the government.
According to Bloomberg's Mark Gurman, Apple's very own CEO has revealed the company's plan of buying some of its chips from the US. He specifically mentioned that this will come from a plant in Arizona and will happen within 2 years.
Apple's TSMC partner is building two factories in Arizona
It is not directly confirmed if the plant he referred is the same as the one that TSMC is currently building in Phoenix. Coincidentally, the Taiwanese manufacturer is slated to produce chips built on 4 nm process in its new facility in 2024. However, it will start with a low volume.
There is also a planned second factory which will cater to 3nm fabrication. And the most probable candidate that will benefit from this technology is the iPhone 15 (Pro) through the A17 Bionic chipset. At the same time, Tim Cook tipped that it could copy the same chip-sourcing strategy for regions like Europe.
Does it mean we will get cheaper iPhones?
Apple's latest initiatives mean it won't totally remove its dependency on Asia as the primary hub for chipsets. They are presumably trying to diversify and mitigate the impact of geopolitical uncertainties. Besides, the US government has announced that it will give tax breaks and incentives to companies manufacturing chips locally.
It's unclear whether this will be beneficial to consumers too like lowered components costs. What are your thoughts on this? Let us know in the comments section.