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.
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