Apple is looking to begin sourcing chips for its devices from a plant that’s currently under construction in Arizona, thereby taking a step towards reducing the company[‘s reliance on Asian production.
The move was disclosed by CEO Tim Cook during an internal meeting in Germany with local engineering and retail employees as part of a recent tour of Europe, according to remarks reviewed by Bloomberg News. Cook added that Apple may also expand its supply of chips from plants in Europe.
Per the meeting notes:
“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. And in Europe, I’m sure that we will also source from Europe as those plans become more apparent.”
Cook is likely referring to an Arizona factory that will be run by Taiwan Semiconductor Manufacturing Co. (TSMC), Apple’s exclusive chip-manufacturing partner. That plant is slated for a 2024 opening. And TSMC is already eyeing a second US facility, part of a broader push to increase chip production in the country.
A question that’s lingered has been whether the factory as planned is suited to Apple’s needs. TSMC has stated that the plant will initially have a capacity of 20,000 chips per month and use a 5-nanometer production process. That wouldn’t satisfy Apple’s near-future desire for more advanced, 3-nanometer chips. It’s thought that TSMC could theoretically introduce more advanced production more quickly than it has so far announced. Apple could also potentially use the Arizona plant to create less complex components for its products.
While most of the final assembly for Apple products is handled in China and surrounding countries in Asia, Apple does have a set of suppliers that manufacture components domestically. The Cupertino, California-based company has touted that Mac Pro models sold in the US are assembled in Texas.
Stay tuned for additional details as they become available.
Via Bloomberg