TSMC’s impending Arizona chip factory is expected to be up and running in the next few years, but don’t expect iPhones to use parts of it. At least not yet.
SMC’s new factory won’t have the capacity to build chips for Apple’s most popular product, according to a new report. Instead, chips coming out of Arizona are thought to find their way into minor products, including Apple Watch, AirPods, and Apple TV devices.
Made in the USA
Apple will undoubtedly make a lot of noise about the possibility of building some of its chips in the United States in the coming years, with Bloomberg (opens in new tab) noting that it already does this. CEO Tim Cook reportedly told employees in Germany that the company “had already made a decision to buy out an Arizona plant, and this Arizona plant is starting in ’24.” And while Cook stopped naming names, TSMC is the one everyone expects him to be talking about.
However, Bloomberg notes that the new TSMC plant in Arizona can only produce about 20,000 wafers of silicon chips per month. And that’s not enough to dent Apple’s demands. By comparison, TSMC currently builds 1.3 million wafers each month – the Arizona plant will account for less than 1.6% of the company’s global wafer production.
Instead, the report believes Apple’s other products will receive the “Made in the USA” treatment. “It’s more likely to get orders for a few key chips used in lesser devices like AirPods, TV, HomePod or Watch,” the report said. say.
It’ll be a while before TSMC can build chips for Apple’s best iPhones in the United States, but at least some by the time the factory comes online, production will be on its own premises.