Apple Watch Chips Now Being Made in the U.S. for the First Time

[MacRumors]

Apple has expanded its production footprint in the United States, with its S9 chip for the Apple Watch now reportedly being manufactured at TSMC's facility in Arizona.

According to technology columnist Tim Culpan, TSMC has now started producing Apple's S9 System-in-Package (SiP) chip near Phoenix, Arizona at its Fab 21 plant. The company commenced production of the A16 Bionic chip for the iPhone 15 and iPhone 15 Plus at the facility last year.

The S9 debuted in the Apple Watch Series 9 in late 2023, based on processing features derived from the A16 Bionic chip. Both products are produced using TSMC's 4-nanometer process technology, known simply as "N4." This shared technological foundation reportedly allowed TSMC to efficiently adapt its Arizona production line to accommodate the S9 alongside the A16. While the Apple Watch Series 9 is now out of production, the S9 chip is still used in the Apple Watch Ultra 2, which was introduced at the same time.

While the A16 Bionic has been in production at Fab 21 since September 2024, the addition of the S9 SiP reflects an accelerated ramp-up in operations at the Arizona facility. The Arizona plant represents TSMC's first major semiconductor manufacturing site outside Taiwan, but production capacity at the facility has remained in its early stages.

The current operational phase (Phase 1A) has a monthly output of approximately 10,000 wafers. These wafers are shared between the Apple A16 and S9 chips, and other clients such as AMD. Each wafer can yield hundreds of chips, depending on die size, design, and production efficiency. The completion of Phase 1B is expected to double the facility's capacity to 24,000 wafers per month early this year.

Article Link: Apple Watch Chips Now Being Made in the U.S. for the First Time

 

[philpalmiero]

Woo-hoo!!

 

[kaishockz]

Next up

"Build that goddamn phone in the states Tim Apple" !!!

 

[citysnaps]

Next up

"Build that goddamn phone in the states Tim Apple" !!!

Not happening. The infrastructure doesn't exist in the US to crank out 600,000 iPhones per day (on the average), with the ability to instantly ramp up and down quantity based on demand.

 

[nattK]

Guess there's a good chance the new HomePod mini will be using an S9 chip!

 

[JapanApple]

Big Smile!

 

[jo-1]

Every moderately cautious privat consumer is looking for a diverse supplier base.

I try to split my supplies to a few good suppliers and not one that might fail and then I am left behind.

In the electronics business only the cheapest price seems to be the driver - I am always struggling with my customers wanting the best while in reality they want the cheapest with risk of the supply chain.

I have no sympathy for people not getting their supplies when it was clear from the beginning that the supply chain is risky.

With the imminent problems in conflict zones I am very carefully stuffing my supply and I am prepared for longer outage of supply on certain things - we are all too much spoilt by omnipotent availability. This is misbelieve.

Good that some companies are starting to mitigate these potential risks.

 

[9081094]

Would be nice to see more American and European companies to produce domestic and getting less dependent on foreign countries. I hope we will slowly see a change and I only applaud any move to make this happen. Nice start Apple!

 

[Sean7512]

So the chips are made here, then shipped off to China to be assembled into the watches. Then the watches are shipped back here for sale? This sounds like the most efficient process ever.

 

[BorisDG]

It's N4P, not N4. On paper if they are making S9, that should apply for S10. Essentially it's the same SiP with probably some small changes outside of the CPU part.

 

[TigerNike23]

I used to live about 2 miles from the Arizona plant. They started building in 2019. It’s 2025. So, when I hear people scream “let’s build it here!”, they don’t care that it takes 6 years from shovel in the ground to the first product being pumped out.

 

[BigBellyBelcher]

Suck it china!🇺🇸🇺🇸🇺🇸

 

[VPsmith]

Sounds like we’re inching closer to no longer relying on TSMC in Taiwan. Must be pretty convinced China is going to invade soon. 2027?

 

[Apple_Robert]

Glad to see this finally happening. Time (pun intended) to get Apple onboard with the rest of the toys.

 

[GMShadow]

So the chips are made here, then shipped off to China to be assembled into the watches. Then the watches are shipped back here for sale? This sounds like the most efficient process ever.

When Samsung fabbed Apple's chips previously it was in Austin. It's not like it takes tons of space, and if things are done correctly you're just using planes that were already making a return trip to go pick up more shipments.

 

[jlc1978]

So the chips are made here, then shipped off to China to be assembled into the watches. Then the watches are shipped back here for sale? This sounds like the most efficient process ever.

It's a total cost to manufacture question - as long ass shipping and assembly elsewhere is cheaper that will be the process. A friend in the granite counter top business was shipping slabs to China and reimporting finished to order product because it was cheaper than finishing locally. Crazy but it kept costs down.

 

[MasterControlProgram]

Sounds like we’re inching closer to no longer relying on TSMC in Taiwan. Must be pretty convinced China is going to invade soon. 2027?

That's my guess on it. I'd bet there's some deal with the TSMC management to relocate operations to the US fully if China invade. They'll probably destroy the factories before they leave to ensure nothing can be used.

 

[WarmWinterHat]

Suck it china!🇺🇸🇺🇸🇺🇸

These chips were never made in China. They were made in Taiwan.

 

[9081094]

So the chips are made here, then shipped off to China to be assembled into the watches. Then the watches are shipped back here for sale? This sounds like the most efficient process ever.

Timmy could take them with him on his next visit to China is his own private plane ✈️ 😉

They’re small and easy to carry.

 

[Polinsky]

Next up

"Build that goddamn phone in the states Tim Apple" !!!

So you would be willing to pay the increased cost of producing it in the US?? Or will you start complaining that the cost is too high?

 

[jo-1]

So you would be willing to pay the increased cost of producing it in the US?? Or will you start complaining that the cost is too high?

I could not care less for the price - I always buy my Apple device maxed out and use them for 4+ years and sell them afterwards in mint condition for a nice return - plus I am deducting these devices as business related items and cash in 45 % in Germany from my tax reduction - has been working really fine for the past 25+ years and it's a minimum investment - in case there are a few bucks on top this does not change anything in bigger scheme.

The cost of not having an interruption could be much severe.

 

[WarmWinterHat]

I could not care less for the price - I always buy my Apple device es maxed out and use them for 4+ years and sell them afterwards in mint condition for a nice return - plus I am deducting these devices as business related items and cash in 45 % in Germany from my tax reduction - has been working really fine for the past 25+ years and it's a minimum investment - in case there are a few bucks on top this does not change anything in bigger scheme.

The cost of not having an interruption could be much severe.

Estimates that I have seen calculate the cost to produce in the US (ignoring the fact that it's not even possible to build them here), as $200-400 USD, per device. Others calculate that it could double to triple the price.

 

[mlayer]

Fantastic news. I drove by the TSMC PHX/Anthem campus a few weeks ago and it is enormous. The Fab 21 plant is the training wheels version of production until they're ready to go with the more advanced nodes. TSMC plans to build 2 nm chips at its next two fabs on site. It's a bit different from seeing the old fabs in Silicon Valley, which were often carved out from 40 acres of orchards.

 

[jo-1]

The cost to produce in the US (ignoring the fact that it's not even possible to build them here), would be $200-400 USD, per device.

as I said - neglectable in the bigger scheme - then I'd use it instead of 4 years just 4 years and two months

my current iPhone 14 Pro cost me including Apple care € 2,258 - + € 200 doesn't change a lot - that's less than +10 %

 

[WarmWinterHat]

as I said - neglectable in the bigger scheme - then I'd use it instead of 4 years just 4 years and two months

While I'm not particularly price sensitive, many people are, and Apple would start losing marketshare.

I understand you don't care, but Apple does.