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Can’t believe apple haven’t invested in fabrication in the usa

What’s stopping them ? I thought they wanted to do everything in house
Jeez. Well thank goodness they haven't. Don't you realize how massively they'd increase their prices by having to pay american workers decent wages? Their products are already overly expensive enough with the entire manufacturing process done in 3rd world countries.
 
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Semiconductor, inflation, & recession proof Apple Computer....
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No doubt the 15 Pros will be more expensive, I think that is unavoidable unfortunately. I’m guessing we get USB-C/Thunderbolt, 2TB storage, and further major camera improvements. Bring it on. I still only need 256GB of storage so hopefully it’s a little less painful when it comes time to upgrade.
 
Something tells me this has Intel written all over it…Intel offered to pay more to gain a larger percentage of TSMC production capacity to try and blunt Apple’s lead in SoC mindshare and then TSMC used it as a negotiating tactic to extract more money from Apple. That and Intel may want to keep NVIDIA from being able to produce as many GPUs since I think TSMC is their main fab. Regardless, there didn’t seem to be any issues with Apple and TSMC before Intel came on the scene. Intel is well known for their business practices to keep their dominance in the market. I keep hoping Karma comes back to them, but they keep dodging it. Eventually it will get them.
 
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Can’t believe apple haven’t invested in fabrication in the usa

What’s stopping them ? I thought they wanted to do everything in house
Nothing exists in the US to do this. To get even close to the capacity they have it would cost billions of dollars and many years. The earliest it would online if they started today would probably be 2028. And do you think they’ll invest billions into something without making the consumers pay for it? It’s not as easy as “we’ll just do it here.”
 
Economic Daily News previously reported that Apple wouldn't accept the price increase, but it is now saying the company has agreed to bear the cost.”

…translation - Apple will increase the price of their products and the consumer will bear the cost
 
Seeing as how I now must pay about 20% more for groceries (over last 2.5 years), my cuz's brewery paying approx same increase for aluminum cans/barley/yeast, and actually how much more critically important mobile and especially video (Zoom et al.) has become over the pandemic, TSMC's price increases are reasonable for premium devices.
 
It's not hard to imagine what went down when Apple has no one else to turn to that's capable of making the chips they need. There's a reason why TSMC has over 50% market share in the foundry business and has more demand for their services than they can meet.

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In an aside, it's been announced Micron? opening chip manufacturing (dunno if includes foundry or just etching) in NY State.
 
Economics 101. And probably won’t be the last price hike. Companies will have to pay employees more to afford the stuff that went up, which will cause more stuff to go up, and around we go in an endless game of cat and mouse.
Some people say that's growth other say it's what Carlo Ponzi had in mind.
 
It's not hard to imagine what went down when Apple has no one else to turn to that's capable of making the chips they need. There's a reason why TSMC has over 50% market share in the foundry business and has more demand for their services than they can meet.

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Here it is. - $100B is NOT going to make a dent in TSMC's lead/dominance and tech leadership. It's a good possibility military and gov sec requirements will grab most of Micron's future growth/output. Not consumer phones. https://www.cnn.com/2022/10/04/tech/micron-100-billion-chip-factory-new-york/index.html
 
We pay to play.

I have seen no real decreases in expensive electronics as the dollar (along with most currencies) has lost purchasing power. So my iPhone 14 Pro Max 1TB I just received and cost $1,439 before warranty and taxes could cost $1,525 if the entire 6% was applied to the entire phone. But it was nearly the same price as last year.

But the "A: chip is only one part in the bill of materials. So even if the chip cost was $200 more, the added cost would be $12. That is maybe three Starbucks coffees. No need to get a wedgee for that specific component. But the issue is all of the components are under price increase pressure. That might add $100 next year.

There is an unknown price point where even the most die hard folks will balk at annual buying of a new iPhone. The annual buyers may drop out of the club to keeping what they have for longer time periods.
 
Can’t believe apple haven’t invested in fabrication in the usa

What’s stopping them ? I thought they wanted to do everything in house

Profit, their entire business model is built in big profit margins in their products. So they don’t have any self owned suppliers. Plus to build chips on Apples scale would require a rather significant investment in the US and hit their profits in a noticeable way, due to employee rights and laws, hence they use Asian suppliers where such things aren’t as prevalent and obstructive to making money. It’s why they only assemble the Mac Pro in the US, none of it is made there.
 
The CPUs for all Apple's M silicon and A series for mobiles really have no other supplier possibilities than TSMC. Other chips and components can be farmed out Assembly even can be disbursed (US, India, VietNam) but foundry and etching labs really can't without outrageous cost and lead times, and likely huge licensing fees.
 
We pay to play.

I have seen no real decreases in expensive electronics as the dollar (along with most currencies) has lost purchasing power. So my iPhone 14 Pro Max 1TB I just received and cost $1,439 before warranty and taxes could cost $1,525 if the entire 6% was applied to the entire phone. But it was nearly the same price as last year.

But the "A: chip is only one part in the bill of materials. So even if the chip cost was $200 more, the added cost would be $12. That is maybe three Starbucks coffees. No need to get a wedgee for that specific component. But the issue is all of the components are under price increase pressure. That might add $100 next year.

There is an unknown price point where even the most die hard folks will balk at annual buying of a new iPhone. The annual buyers may drop out of the club to keeping what they have for longer time periods.
"...an unknown price point..." Ha, and yah. And even that keeps going up - I keep my phones a long time but at some point it's imperative to buy a new one.
 
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The electronics business is heading for (is already in) a downward slope - ironically just as a number of initiatives to increase production capacity have been made. At this point in time, while there have been a number of companies producing designs for TSMC 3, the actual volumes they will produce remain unclear.

Apple has been a driving force for pushing the manufacturing capabilities for advanced nodes. If Apple were to say ”screw this, the cost vs. benefit just isn’t there”, it would have far reaching repercussions. This news simply says that this is not going to happen. Yet.
Exactly I guarantee you the procurement people haven’t forgotten the lesson about the time they put GTA Technologies the only large scale sapphire supplier for the Apple Watch out of business 8 years ago
 
I think Apple just Balked in public but always intended to pay . So when they raise prices , we wont really blame them . That Darn TSMC ...
 
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Can't help but wonder whether Blevins leaving Apple was at all a factor in the workings here
Totally, without the "Blevinator" around did his replacement take a different tack with this vendor?

BTW this is the Original Vid of Blevins in his Mercedes-Benz SLR McClaren 💸 and this is the explainer vid with the line from Aurthur he was trying to do. Dunno if it was the poor delivery of the joke that got him fired or that he can afford that $500k car! 🤑 😂 they've really trimmed the payroll for his Dept. I bet!
 
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