First iPhone Chips Made in America Soon to Start Mass Production

[TechnoMonk]

Wow! Thanks for the history lesson, I had no idea. Are they actually converting old facilities?

My brother went to ASU and interned at Motorola in the summers . They paid well, he had yearly living expenses taken care from internship, and the ASU gave him scholarship because Motorola had hide research funding for ASU. Good ole days when you didn’t take loans.
I remember the Motorola Plant was planned to be converted to a big economic zone. It’s like a data center, the companies will get fab space with power and other infrastructure. Of course These plants have lot more requirements on air quality among others compared to a data center.

 

[Graphate]

[…] What I thought was crazy is the water needed for all their fab facilities there will use as much water as 3 golf courses per year. How much freakin water does a golf course need!? I mean maybe we should be more worried about golf courses in these areas than the chip fabs. […]

If the grass isn’t green, what’s the point of playing?

 

[theSpringMaster]

This is great news.

 

[The-Real-Deal82]

Are they just as good and does this pass a cost saving onto the consumer? If its a yes to both questions, then great. That is all that matters.

 

[seek3r]

Another step from depending on China's parts etc.

These chips arent made in China right now, they’re made in Taiwan. That said, with China building up forces across the Taiwan straight still a good thing to have them made here too. On the gripping hand if China invades Taiwan and TSMC and other smaller Taiwanese chip makers destroy their fabs to avoid their capture as expected in that scenario Apple being able to make older gen chips will be the least of the planet’s worries on that front

 

[Razorpit]

Can someone educate my ignorance?

Why on earth did TSMC decide to build their plant in Arizona? Doesn't chip manufacturing require MASSIVE amounts of water? Why not build the plant in somewhere like OH, PA, TN, MI, literally any state with an abundance of water? Seems really counterintuitive and a recipe for disaster down the road. Again, maybe that's just my ignorance on the topic. Would be happy to hear any insight.

The Pittsburgh area has a Chrysler, Volkswagen, Sony, facility for something just like this!

Westmoreland Innovation Center – RIDC

RIDC Westmoreland Innovation Center is the center for technology and value-added manufacturing within the region. RIDC Westmoreland offers high-quality, immediately available space only 35-40 minutes from downtown Pittsburgh. The facility boasts features such as heavy power and utility capacity...

ridc.org

Lordstown, Ohio has one too. https://en.wikipedia.org/wiki/Lordstown_Assembly

 

[citysnaps]

I don't even understand the political aspect? AZ is as much a purple state as PA or GA, both have water. Unreal that they are building a billion dollar factory in a place without adequate natural resources.

Just because someone here says something doesn't make it true. Water is recycled.

 

[WarmWinterHat]

These chips arent made in China right now, they’re made in Taiwan. That said, with China building up forces across the Taiwan straight still a good thing to have them made here too. On the gripping hand if China invades Taiwan and TSMC and other smaller Taiwanese chip makers destroy their fabs to avoid their capture as expected in that scenario Apple being able to make older gen chips will be the least of the planet’s worries on that front

TSMC's CEO has stated that they will not destroy their facilities or equipment if China invades.

That said, it's good to diversify where components are made.

 

[cocky jeremy]

Can someone educate my ignorance?

Why on earth did TSMC decide to build their plant in Arizona? Doesn't chip manufacturing require MASSIVE amounts of water? Why not build the plant in somewhere like OH, PA, TN, MI, literally any state with an abundance of water? Seems really counterintuitive and a recipe for disaster down the road. Again, maybe that's just my ignorance on the topic. Would be happy to hear any insight.

We like to live on the edge here in the US. It keeps things interesting.

 

[ApplesAreSweet&Sour]

Hmm.

These wafers smell a little like someone’s trying to avoid some very specific incoming..

tariffs!?!!

Can’t blame them tho. That s*** is a pain, I’m sure.

 

[iPay]

Cutting-edge chips being manufactured in the USA, what a time to be alive.

If memory serves, they're building Gen N-2 chips in Arizona. The day they build topnotch products in the US, Taiwan is doomed.

 

[sw1tcher]

That's not opinion. US government recognizes China as geopolitical adversary and considers it part of new axis of Evil. That's the reason TikTok is getting banned.

Unless... 😟

China mulls potential sale of TikTok US to Musk, Bloomberg News reports

Jan 13 (Reuters) - Chinese officials are in preliminary talks about a potential option to sell TikTok's operations in the United States to billionaire Elon Musk, should the short-video app be unable to avoid an impending ban, Bloomberg News reported on Monday.

Beijing officials prefer that TikTok remains under the control of parent Bytedance, the report said, citing sources.
TikTok's U.S. operations could either be sold through a competitive process or an arrangement by the government, the report said, suggesting that the future of the app is no longer solely in ByteDance's control.
China's government has a "golden share" in ByteDance, which several members of Congress have said gives the government power over Tiktok.

Under one scenario, Musk's social media platform X would take control of TikTok U.S. and run the business together, the report said. Officials have yet to reach a consensus about how to proceed, according to Bloomberg News.

 

[Ctrlos]

Coming to the iPhone 17: The Apple Canyonero 1 chip.

 

[turbineseaplane]

Are they just as good and does this pass a cost saving onto the consumer? If its a yes to both questions, then great. That is all that matters.

I nearly spit out my coffee laughing at the idea of Tim Cook passing on "savings to the consumer"
(vs further padding their margins)

They do all of these moves for the benefit of Apple alone

 

[Marrakas]

As much as I love that they will make more things domestic and away from China, the rumors say the cost of operation is 30% higher in Arizona TSMC compared to Taiwan.

And knowing Apple, they want to keep their high margins, so in the end it's bad news for the consumers.

 

[The-Real-Deal82]

I nearly spit out my coffee laughing at the idea of Tim Cook passing on "savings to the consumer"
(vs further padding their margins)

They do all of these moves for the benefit of Apple alone

Indeed, whereas the opposite is most likely the outcome. It'll probably be a marketing piece where they brag about the chips being manufactured in America and charging us more for the privilege without realising that that detail makes absolutely no difference to people outside of America. I couldn't care less where the components for the phone are made as long as I get a good phone and my kecks aren't pulled down on the price.

 

[GeoStructural]

Can someone educate my ignorance?

Why on earth did TSMC decide to build their plant in Arizona? Doesn't chip manufacturing require MASSIVE amounts of water? Why not build the plant in somewhere like OH, PA, TN, MI, literally any state with an abundance of water? Seems really counterintuitive and a recipe for disaster down the road. Again, maybe that's just my ignorance on the topic. Would be happy to hear any insight.

Basically because of tax exemptions, guaranteed investment plans, and favorable labor laws.

Fun fact, I just turned down a job offer in Phoenix, AZ. The city is expected to be the next Austin or Denver, massive growth is forecasted based on investment plans in several sectors, including solar energy, manufacturing, and infrastructure projects.

 

[Nekronos]

Can someone educate my ignorance?

Why on earth did TSMC decide to build their plant in Arizona? Doesn't chip manufacturing require MASSIVE amounts of water? Why not build the plant in somewhere like OH, PA, TN, MI, literally any state with an abundance of water? Seems really counterintuitive and a recipe for disaster down the road. Again, maybe that's just my ignorance on the topic. Would be happy to hear any insight.

Money & politics.

Water shortages loom over future semiconductor fabs in Arizona

Water and semiconductor shortages come to a head in Arizona.

www.theverge.com

Money and politics.

Money and politics is overly simplistic, you could say local municipal incentives laid the foundation for such factors such as a skilled workforce, existing infrastructure and business friendly regulation that supports additional fabs. There are over 100 semiconductor makers in Arizona.

 

[JitteryJimmy]

Can someone educate my ignorance?

Why on earth did TSMC decide to build their plant in Arizona? Doesn't chip manufacturing require MASSIVE amounts of water?

Because water is easily recycled, and because water should be recycled. After all, water is forever, and chips have near zero water content. It is just that some of the production processes use water.

In some areas, it is simply easier to dump the waste water into the local waterways. But instead, it can - and should - be cleaned and reused. It is only dumped in some areas due to the desire not to spend the money to clean it.

As noted in the article you cite: "Intel recycles much of its water"

 

[Doomtomb]

Great... we'll have a Taiwanese company manufacture the wafers in USA, then ship them back to Taiwan to get tested and packaged then send the chips to China to do board assembly and final assembly in i-products.

It's not enough. Asinine. We still fully dependent on China for decades to come.

 

[bhirt37]

Are they just as good and does this pass a cost saving onto the consumer? If its a yes to both questions, then great. That is all that matters.

They are older fab processes. The chips cost more to produce.

 

[The-Real-Deal82]

They are older fab processes. The chips cost more to produce.

Apple best make sure it doesn’t drive retail costs up then and they remain competitive on price.

 

[Frantisekj]

Existing TSMC's A-series fabs were/are in Taiwan. Sure, it's the original China, but it's not the evil one.

Still, great step diversifying locations and placing fabs out of potential military reach of PRC and you also said "etc.".

It is just matter of time to moment when China will be confident to manage reunification even forcefull way and then they will do that. And Apple and all know that so hurry up to move production home.

 

[jz0309]

I have to wonder how much shipping of unfinished components will still be going back and forth. As I understand it most of the rest of the components and final assembly is in China so doesn't this, for a while anyway, mean two trips back and forth instead of one?

Just as much as before. It’s the actual wafers that are produced in AZ, then they get shipped to wherever assembly and test are done.
It has been very common in semiconductor that chips (the packaged chip that is) travel around the world before they get into consumers hands, I don’t see that changing any time soon.

 

[jz0309]

AZ was a big player in chip fabs in 80s and 90s. Motorola along with Intel had huge fabrication facility in AZ, which were shut down in 2000s and plants moved to Asia. Arizona has long history in semiconductors compared to any of the states you mentioned. Not everything has to be money and politics. ASU was key source of providing semi conductor talent, and they are converting old Motorola Manufacturing facility to specialized zone for fabs.

Intel still has 2 fabs in AZ and there are still other players