Apple to Source Chips From Arizona Starting in 2024

[MacRumors]

Apple plans to begin sourcing some of its chips from a plant in Arizona, according to a report from Bloomberg. Apple CEO Tim Cook revealed the information in a meeting with engineering employees in Germany back when he was touring Europe.

"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," Cook told the employees. "And in Europe, I'm sure that we will also source from Europe as those plans become more apparent," he said at the meeting, which included Apple services chief Eddy Cue and Deirdre O'Brien, its head of retail and human resources.

Cook did not provide details on the chips that Apple will source from Arizona, but Apple supplier TSMC is currently building a fabrication plant near Phoenix. TSMC started the project in 2020, and it will start mass production on 4-nanometer chips in 2024.

Just last week, The Wall Street Journal said that TSMC plans to open a second factory in Arizona, with the $12 billion plant set to manufacture cutting edge next-generation 3-nanometer chips that will likely be used for future Apple devices.

The Biden administration has been aiming to encourage companies to manufacture chips in the United States through financial incentives, while Apple has also been looking to cut down on its reliance on China. TSMC's primary factories are in Taiwan, but it also operates locations in Camas, Washington, as well as design centers in Austin, Texas and San Jose, California.

Article Link: Apple to Source Chips From Arizona Starting in 2024

 

[sublunar]

Securing a vital supply chain in case the worst happens in Taiwan I guess makes eminent sense for Apple.

 

[prime17569]

It would be great to buy an iPhone made in the USA when I am ready to upgrade.

 

[TheYayAreaLiving 🎗️]

iPhone - Made in the USA (Make it happen, Apple).

TSMC should plan on opening up a third factory plant in Las Vegas, Nevada since there is no business property tax. This will encourage the costs of the chips low thus leading to a cheaper iPhone.

 

[Devyn89]

iPhone - Made in the USA (Make it happen, Apple).

TSMC should plan on opening up a third factory plant in Las Vegas, Nevada since there is no business property tax. This will encourage the costs of the chips low thus leading to a cheaper iPhone.

It’s Apple lol, do you really think they’ll pass on savings to us? Only if market pressures make them and so far that’s not happening.

 

[Wanted797]

It’s Apple lol, do you really think they’ll pass on savings to us? Only if market pressures make them and so far that’s not happening.

They’ll raise the price and say it’s because it’s now onshore.

 

[ThatAtomicPoet]

It’s Apple lol, do you really think they’ll pass on savings to us? Only if market pressures make them and so far that’s not happening.

plus labor costs will increase.

 

[jz0309]

surely they will source some of their many chips from that fab in AZ, but leading edge processes will be done by TSMC in Taiwan, then roll out to other fabs after that ...

 

[GMShadow]

surely they will source some of their many chips from that fab in AZ, but leading edge processes will be done by TSMC in Taiwan, then roll out to other fabs after that ...

N4 will still be nearly leading edge by then - TSMC may have 3nm out, but Apple likely won't use it for more than the bleeding edge iPhone chips.

 

[alpi123]

It would be great to buy an iPhone made in the USA when I am ready to upgrade.

If you're ready to pay 20-30% more for it, sure.

 

[jz0309]

N4 will still be nearly leading edge by then - TSMC may have 3nm out, but Apple likely won't use it for more than the bleeding edge iPhone chips.

TSMC 3nm is now in production, there have been many reports out incl here on MR, in 2 years, they'll have 2nm ...
as I said, they'll get some of their chip from the plant in AZ ...

 

[smorrissey]

Can't wait for the prices $$$$$$$$

 

[applepotato666]

It’s Apple lol, do you really think they’ll pass on savings to us? Only if market pressures make them and so far that’s not happening.

It's all margin anyway lol. But also labor is way more expensive in the US than in Taiwan. So I doubt there's going to be any savings, likely the opposite. They are bound to face market pressure sooner rather than later though with the models outside of the ultra highend (I think the 14 is already not doing as well as they thought it would) which are too expensive for what other brands have

 

[applepotato666]

Diversifying the supply chain is always a good move in case of the worst happening. Glad they're also looking at Europe, hopefully they don't sanction them for breathing on European territory as usual ...

 

[twiebnoyagad]

This most likely won't happen. Arizona won't be able to support the amount of water that needs to be used to create the chips, including the addition of people living there to create said chips.

 

[xxray]

Incredible news. It’s concerning how concentrated chip production is geographically right now.

 

[sw1tcher]

TSMC should plan on opening up a third factory plant in Las Vegas, Nevada since there is no business property tax. This will encourage the costs of the chips low thus leading to a cheaper iPhone.

Las Vegas, Nevada with their water shortage, cuts to water supply going down there, and conservation efforts? Not a chance.

Lake Mead Water Shortage

In January 2022, Southern Nevada’s water allocation was reduced by 7 billion gallons, enough water to serve 45,000 homes.

www.lasvegasnevada.gov

Southern Nevada has 8 years of water reserves as state faces water cuts from Colorado River

Gloom and doom is what we’re all used to hearing when it comes to our ongoing drought. You typically don’t hear leaders talking about having extra water.

www.fox5vegas.com

 

[MrMojo1]

This will encourage the costs of the chips low thus leading to a cheaper iPhone.

Does anyone seriously think Apple will lower iPhones prices even if it could manufacture iPhones for less? Wishful thinking.

 

[Dan From Canada]

This plant will only be financially viable if they have labour as cheap as in Taiwan.
Now where will Arizona find cheap, cheap labour?

 

[Villarrealadrian]

Finally bring it back home!

 

[ThatAtomicPoet]

Does anyone seriously think Apple will lower iPhones prices even if it could manufacture it for less? Wishful thinking.

This plant will only be financially viable if they have labour as cheap as in China.
Now where will Arizona find cheap, cheap labour?

iPhone prices will increase, quality may also decrease

Exactly! Cheap labor. Hmmm from where

 

[Baritone_Guy]

iPhone - Made in the USA (Make it happen, Apple).

TSMC should plan on opening up a third factory plant in Las Vegas, Nevada since there is no business property tax. This will encourage the costs of the chips low thus leading to a cheaper iPhone.

It will cost a lot more to make a phone in the US. Wages alone will see to that.

 

[ThatAtomicPoet]

It will cost a lot more to make a phone in the US. Wages alone will see to that.

We want things built in our countries but consumers aren’t willing to pay that price.

 

[steve09090]

It won’t be that much more expensive or cheaper. And I bet it will be mostly automated. A handful of employees at best. They’ll have better, more consistent yield. A capitalist society will always find a way to get more for less.

 

[docbop]

Apple plans to begin sourcing some of its chips from a plant in Arizona, according to a report from Bloomberg. Apple CEO Tim Cook revealed the information in a meeting with engineering employees in Germany back when he was touring Europe.

Cook did not provide details on the chips that Apple will source from Arizona, but Apple supplier TSMC is currently building a fabrication plant near Phoenix. TSMC started the project in 2020, and it will start mass production on 4-nanometer chips in 2024.

Just last week, The Wall Street Journal said that TSMC plans to open a second factory in Arizona, with the $12 billion plant set to manufacture cutting edge next-generation 3-nanometer chips that will likely be used for future Apple devices.

The Biden administration has been aiming to encourage companies to manufacture chips in the United States through financial incentives, while Apple has also been looking to cut down on its reliance on China. TSMC's primary factories are in Taiwan, but it also operates locations in Camas, Washington, as well as design centers in Austin, Texas and San Jose, California.

Article Link: Apple to Source Chips From Arizona Starting in 2024

So moving the highly toxic polluting manufacturing from overseas back to the US. Regulation of water and soil pollution made them move overseas. So health of people in US is no longer a concern. I remember when DEC computers closed down their Hudson MA chip factory because of so many health issues it created.