Third US Plant Set to Make Apple Chips Breaks Ground

[MacRumors]

Apple has reaffirmed its commitment to making chips in the United States as Taiwan Semiconductor Manufacturing Company (TSMC) begins construction on its third fabrication facility in Arizona.

The facility in Phoenix represents part of a $100 billion investment TSMC pledged in March to make over four years in the American semiconductor industry. The new plant follows the company's initial $65 billion commitment in Arizona and is being positioned as a key node in the effort to manufacture chips for Apple and other U.S.-based technology companies within domestic borders.

A new press release from the U.S. Department of Commerce quotes Apple CEO Tim Cook:

We're proud to support the high-skilled American jobs of tomorrow. As TSMC Arizona's first and largest customer, we're excited for the future of American innovation and the incredible opportunities it will create.

TSMC currently manufactures the majority of Apple's chips in Taiwan. Under current company policy and Taiwanese export restrictions, the most advanced fabrication technologies, including the 3-nanometer processes used to make the A18 and M4 chips, remain exclusive to facilities in Taiwan. The Arizona plants, by contrast, are limited to producing slightly older nodes. These fabs are expected to manufacture 4-nanometer chips such as the A16 Bionic and S9, used in the iPhone 15 and Apple Watch Ultra 2.

In an earnings call earlier this month, TSMC CEO Dr. C.C. Wei said that production yields at the company's first Arizona plant are now matching those in Taiwan. The second plant, announced in 2022, is currently ramping up operations and is expected to become fully operational by 2028. The third facility does not yet have a confirmed completion date.

Note: Due to the political or social nature of the discussion regarding this topic, the discussion thread is located in our Political News forum. All forum members and site visitors are welcome to read and follow the thread, but posting is limited to forum members with at least 100 posts.

Article Link: Third US Plant Set to Make Apple Chips Breaks Ground

 

[It’s always something]

The second plant, announced in 2022, is currently ramping up operations and is expected to become fully operational by 2028.

I’d just like to point out the turnaround time here: six years. For one single plant.

 

[kiranmk2]

So what is this fab going to make if it's restricted to 4 nm and larger and won't be operational until 2028?

 

[bmustaf]

Well, if they want to continue to receive the latest/greatest Block 70 upgrades to their F-16 fleet we gladly export, I think we ought to expect/push for them to relax those export controls because we all know it is only a matter of time before Taiwan will be 100% (at least functionally) be in the hands of the CCP and no number of carrier strike groups, etc can do anything about that at this point because at the very least, a stalemate there will still bring the supply chain to a grinding halt and knowingly setting ourselves up to having the world's most advanced process node stalemate'd (and likely the lines/EUV kit destroyed to avoid having it fall into CCP hands) does not sound like great policy for anyone except the CCP and those aligned with them.

 

[klasma]

Meanwhile, Taiwan is forbidding the outsourcing of the newest technology by law: https://9meters.com/technology/new-taiwan-law-blocks-tsmc-from-giving-advanced-chip-tech-to-u-s

“At the heart of this restriction is the newly revised Industrial Innovation Act, which introduces an “N-1” policy. This rule mandates that any semiconductor manufacturing technology deployed abroad must be at least one generation behind what is currently allowed for production in Taiwan.”

 

[flexwithmarius]

I’d just like to point out the turnaround time here: six years. For one single plant.

Fine, better now than never.

 

[lkrupp]

Let me get this straight. The chips will be made here and then shipped back to China for assembly. And that’s more cost effective?

Or is this all political theatre?

 

[Nimrad]

So what is this fab going to make if it's restricted to 4 nm and larger and won't be operational until 2028?

It seems to me it is at all times just restricted to slightly older hardware by law, not physically.

 

[julesme]

So what is this fab going to make if it's restricted to 4 nm and larger and won't be operational until 2028?

It’s not permanently restricted to 4nm. It’s restricted to being one generation behind the latest nm process in Taiwan, which changes over time.

 

[Nimrad]

Let me get this straight. The chips will be made here and then shipped back to China for assembly. And that’s more cost effective?

Or is this all political theatre?

Not sure about cost, but there’s a point to diversifying. Apple has been wanting to diversify production/suppliers for years. Not for political theatre, but hedging for political(and other) turmoil.

 

[picpicmac]

The chips will be made here and then shipped back to China for assembly. And that’s more cost effective?

Probably shipped to several different countries.

Or is this all political theatre?

Everything about this stuff is political theatre.

As someone else noted, it takes many years to go from announcement to actually spitting out chips.

These things cook for a long time... even before an announcement you can bet that marketing, finance, and corporate strategists have been debating long term plans.

In the R&D side of things, one can easily spend over a decade trying to bring some improvement to fruition.

Nevertheless, politicians will crow about the success of their proclamations regardless of actual impact they've had in the big picture.

 

[mcnallym]

So in other words simply TSMC continuing its investment that announced how long ago. Second factory opened in 2022 and fully online 2028.
These aren’t new overnight but planned many years ago.

 

[Mrbobb]

So what is this fab going to make if it's restricted to 4 nm and larger and won't be operational until 2028?

EXACTLY.

Another Foxconn in the U.S.A.

A political move to appease the current administration.

 

[klasma]

Let me get this straight. The chips will be made here and then shipped back to China for assembly. And that’s more cost effective?

That’s surprisingly common. Stuff gets shipped back and forth all over the world for different production steps, because that’s still cheaper.

 

[dannys1]

Let me get this straight. The chips will be made here and then shipped back to China for assembly. And that’s more cost effective?

Or is this all political theatre?

Also the raw materials will probably be shipped to the US to make them in the first place.

It doesn't sound very carbon neutral...

 

[dannys1]

It's interesting how this is TSMC building a factory in the US but it's considered Apple reaffirming its commitment to making chips in the United States.

Are Apple funding large amount of this build?

 

[jmpage2]

Let me get this straight. The chips will be made here and then shipped back to China for assembly. And that’s more cost effective?

Or is this all political theatre?

The global supply chain is extremely complex but what we are starting to see is that China hoovering up all of the advanced manufacturing for tech products leaves companies extremely vulnerable to trade wars possible future global sanctions if China takes over Taiwan etc.

More and more companies are going to be forced to diversify and you are going to see an enormous push to India as the next assembly hub for devices as more companies try to become less reliant on China.

 

[PsykX]

The biggest advantage is that it will help engineers who design these chips and the production methods to actually go in the plant and debug production problems, instead of having to fly to Asia to do so.

But other than that, chips are so small, this is most likely a 99% automated process. Will it create jobs ? Not that many. This is just to calm down the current US administration basically.

 

[iamgalt]

EXACTLY.

Another Foxconn in the U.S.A.

A political move to appease the current administration.

Plans for this factory started before this administration.

 

[falkon-engine]

You have to Think Different to avoid these Tariffs

 

[ThailandToo]

Drove by the plant yesterday. Took a video of it for a minute while driving by. It’s a big plant and one can see they’re all ready expanding next to it. Sort of like data centers do where they buy a bunch of land and put up one and as they need each additional data center they start building the second next to it.

Most important question, when will TSMC produce high end chips in this plant? Right now it’s older chips using older processes.

 

[JustSomebody12]

I’d just like to point out the turnaround time here: six years. For one single plant.

I don't want to sound bad, but large industrial projects often work and are planned in multiples of quinquennia

 

[ifxf]

What percentage of the machinery will be imported?

 

[ZipZilla]

I have no idea why people in the comments are objecting to American jobs coming back to America. Thank you Apple and TSMC. Whatever work you are doing in America is giving people jobs.

 

[It’s always something]

I have no idea why people in the comments are objecting to American jobs coming back to America. Thank you Apple and TSMC. Whatever work you are doing in America is giving people jobs.

The only things I’d be objecting to (if anything at all) would be claims that Trump should get credit for a plant that’s been planned since 2022, or that this in any way currently affects present economic conditions in the country (beyond construction). Being somewhat familiar with the current administration’s penchant for pretentious big wins (like Bondi’s idiotic claim today that Trump has saved 258 million lives in the USA so far this year), I’d like to see his fans be a tad more realistic, that’s all. 😉