An advanced new chip factory will soon be operational in Phoenix, Arizona. Along with NVIDIA and AMD, Apple is planning to use processors made in America. With a direct and more stable supply of chips, the tech company could produce more products at a much faster rate. President Joe Biden announced the domestic production of Apple chips in an event outside the Arizona factory.
Chips Fabricated in the US
President Joe Biden stated that the chips would power Apple products like iPhones and MacBooks. He also mentioned that before that Apple had to buy advanced chips overseas. Now, the US will be the main supplier for the tech giant's chip needs. Both the US president and Apple CEO Tim Cook were present at Taiwan Semiconductor Manufacturing Co.'s ceremony.
The event was to celebrate the arrival of equipment for production, as mentioned in The Verge. TSMC showed the large building off to customers, employees, local leaders, journalists, and more. The building is only the first factory that TSMC will build to create 4mn processors, and they aim to put up another in 2026 to manufacture 3mn chips.
Jensen Huang, the CEO of NVIDIA, even said that it is a game-changing development of TSMC to bring their investment to the US. He also mentioned that the chip manufacturer had become a global platform that plays a significant role in the tech industry. With the future release of the 4mn and 3mn chips, TSMC will surely pull in more business.
As of now, the latest Apple phone, iPhone 14 Pro and Pro Max, still uses an A16 chip created with 5mn technology. However, the factories cannot be set up fast enough, which means that more advanced chips will still be fabricated overseas. In 2025, the company plans to make 2mn chips, and the factories or a factory might be operational by then.
More Business for America
The chip fabricating company will be investing $40 billion in the Arizona factory. With two fabs, TSMC will be able to produce around 600,000 wafers per year, which is enough to meet demands in the US, according to the White House. It has already been confirmed that AMD, NVIDIA, and Apple will be buying their chips from the Arizona fabrication.
The factories follow the CHIPS and Science Act that was just signed this August. The law has pulled $52.7 billion in loans, grants, and incentives, excluding the tax credits which are also billions worth, according to CNBC. The new law aims to pull in investments for the manufacturing of semiconductors in the US.
According to Brian Deese, Director of the National Economic Council, the passage of the law provides long-term certainty for companies to expand their business to the US. Ronnie Chatterji, Acting Deputy Director for the same council, said that it is the foundation of personal electronics, and the future of quantum computing and AI.
