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Made in the USA: Apple plans to buy iPhone chips from its own backyard

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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.

iPhone 14 Pro review
The iPhone 14 Pro has more than enough power with the Apple A16 Bionic - the stability is impressive. / © NextPit

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.

Via: MacRumors Source: Bloomberg

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Jade Bryan

Jade Bryan
Junior Editor

I still remember how amazed I was when I first got hold of the Nokia 3210 back when I was a kid, and it was during that time I developed my love for technology, particularly for mobile phones. I started sharing my knowledge through writing in different blogs and forums back in Nokia Nseries era. I even make videos before where I put different phones side-by-side. Today, I'm still an avid enthusiast of smartphones, but my interests have evolved into smart devices and electric vehicles.

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