Apple prepares to diversify its supply chain with US-produced chips
Apple is not the only tech giant eyeing its chips to be made in the US.
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China is one of the biggest manufacturers of Apple products, but the company also sources its processors and other parts from the US and Taiwan. But, Apple CEO Tim Cook recently said that 60% of the world's processors are from Taiwan, which isn't exactly a "strategic position." And in July, the US passed the Chips and Science Act with US$52 billion in financial incentives to encourage US semiconductor production to compete with China.
So, Cook revealed during an internal meeting last month in Germany that the company will start sourcing chips from an Arizona factory run by TSMC that is expected to open in 2024. He also said that Apple might further expand chip sourcing from Europe's factories. This is a big step for Apple to diversify its supply chain and start producing domestically instead of being dependent on manufacturers in Asia. Apple is not the only tech giant eyeing its chips to be made in the US. Its previous supplier Intel is also building a factory in Arizona to be opened in 2024.
Key comments:
"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," said Apple CEO Tim Cook to his employees. "And in Europe, I'm sure that we will also source from Europe as those plans become more apparent."
"America invented the semiconductor. It's time to bring it home," said US President Joe Biden in July on the Chips and Science Act.
"I think you will wind up seeing a significant investment in capability and capacity in both the United States and Europe to try to reorient the market share of where silicon is produced," said Cook during the meeting in Germany.
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