Apple will use chips made in the US at a factory in Arizona.
- According to CEO Tim Cook, Apple will purchase chips from the TSCM facility in Arizona in the US.
- Apple is intensifying its efforts to move production outside of China in the face of stringent pandemic regulations.
For the first time in almost a decade, according to Apple CEO Tim Cook, the tech giant will be employing semiconductor chips produced in the US. According to Bloomberg, Cook made the declaration during the opening ceremony of Taiwanese chipmaker TSMC's new Arizona facility on Tuesday. A significant supplier of chips to Apple, TSMC has opened its first significant US production site at Phoenix, Arizona.
Cook tweeted on Tuesday that Apple would be the facility's 'biggest customer.' Since the Taiwanese chipmaker indicated it will more than triple its planned investment into its Arizona facilities from $12 billion to $40 billion, TSMC's facilities are considered as a success for the Biden administration.
During the same TSMC event, President Joe Biden declared, 'American manufacturing is back, guys.' Apple is changing its strategy as it navigates geopolitical tensions between Washington and Beijing and China's stringent COVID-19 containment measures by sourcing chips for its devices from TSMC's Arizona plant.
The US implemented export restrictions in October, prohibiting the sales of semiconductors made with US technology. The restrictions make it difficult for computer businesses to purchase chips made elsewhere in the world since they might be produced using US machinery.
Beijing's harsh pandemic restrictions, which halted iPhone production at Foxconn's facilities, one of Apple's main suppliers, have also been a problem.
Apple has been stepping up efforts to move some production out of China and into other Asian nations like India and Vietnam in order to diversify its supply chain. The US implemented export restrictions in October, prohibiting the sales of semiconductors made with US technology. The restrictions make it difficult for computer businesses to purchase chips made elsewhere in the world since they might be produced using US machinery.
Beijing's harsh pandemic restrictions, which halted iPhone production at Foxconn's facilities, one of Apple's main suppliers, have also been a problem. Apple has been increasing up attempts to move some production out of China and into other Asian nations like India and Vietnam in order to diversify its supply chain.