Taiwan Semiconductor Manufacturing is Apple's production outsourcing partner.
Apple began producing a Mac Pro computer in small quantities in the US last year.
A $12 billion semiconductor facility would be constructed in Arizona, according to TSMC.

Apple Inc. is getting ready to start buying processors for its iPhones from a factory that is being built in Arizona, which is a significant step toward the company's goal of lessening its reliance on Asian manufacturing.

As part of a recent tour of Europe, Chief Executive Officer Tim Cook disclosed the information to local engineering and retail employees during a meeting in Germany. Remarks were reviewed by Bloomberg News. Apple may also increase its supply of processors from European manufacturing facilities, he continued.

Cook is most likely referring to a facility in Arizona that Taiwan Semiconductor Manufacturing Co., Apple's sole chip-manufacturing partner, will operate. The planned opening year for that plant is 2024. And as part of a larger initiative to boost chip manufacture in the nation, TSMC is already considering opening a second US site.

After Bloomberg News reported on Cook's comments, TSMC stock rose as much as 2.9% in Taiwan trading on Wednesday. Little had changed at Apple. The stock of TSMC increased 7.9% on Tuesday after Berkshire Hathaway Inc., owned by Warren Buffett, announced it had purchased a stake in the business.

Additionally, Intel Corp. is constructing facilities in Arizona that might debut as early as 2024. For many years, the chipmaker was a significant Apple supplier; however, it is unlikely to win back that business. Apple has replaced Intel processors with its own components in Macs and other products, and the chipmaker has a sketchy history of producing other companies' designs.

As part of the Chips and Science Act, the US government is offering around $50 billion in incentives to boost domestic semiconductor manufacturing expansion. The current supplier for the iPhone manufacturer's device processors is a TSMC facility in Taiwan, which accounts for a disproportionate amount of output. Cook stated during the meeting that Taiwan produces 60% of the world's CPU supply.

Whether it's the high-end Mac Pro desktop computer, the iPhone, or even the AirPods, processors are at the core of almost every Apple product. Apple created the chips, which were then produced by TSMC. After relying on Asia for years, returning even a small portion of that production to the US would be a significant step.

The suitability of the plant to Apple's demands remains an open question. According to the Taiwanese company, the plant will initially be able to produce 20,000 chips each month using a 5-nanometer manufacturing method. That wouldn't fulfil Apple's need for more sophisticated, 3-nanometer chips in the near future.