Cook joined President Joe Biden onsite this week to celebrate its forthcoming contribution to US chip manufacturing. In an announcement first reported by CNBC, Cook shared that Apple would be shifting away from imported chips in favor of Arizona-made chips once the factory was in production. “Now, thanks to the hard work of so many people, these chips can be proudly stamped ‘Made in America,’” Cook said. “This is an incredibly significant moment.”
Apple’s relationship with the new factory isn’t much of a surprise given recent rumors. Apple has sourced all of its chips from TSMC for a while now, meaning the semiconductor manufacturer’s decision to build another Arizona location quickly gave way to a benevolent opportunity for Apple. The fab, which will start with its 4nm chips and eventually rope in 3nm, gives Apple a chance to prove it’s invested in sourcing domestic parts and creating jobs here in the States.
An artist’s rendering of what Fab 21 will look like when it’s complete in 2024. (Image: TSMC)
“Today we’re combining TSMC’s expertise with the unrivaled ingenuity of American workers,” Cook said at the event. “We are investing in a stronger, brighter future; we are planting our seed in the Arizona desert. And at Apple, we are proud to help nurture its growth.”
Cook went on to tweet that Apple would be the new site’s largest customer. As Bloomberg pointed out last month, this is likely more of a marketing pivot than a technological one. The fab is expected to churn out about 20,000 chips per month, which constitutes less than two percent of the 1.3 million chips it produces globally. Even if TSMC devoted its new fab’s entire capacity to Apple, it would only be able to support 1 percent of the company’s iPhone output (let alone its other devices.) The diversion would hardly be worth it. As a result, some suspect any chips Apple gets from Arizona will become a part of the AirPod, Watch, or Apple TV supply chain.
Still, the US has proven its commitment to domestic chip manufacturing. Most semiconductors are sourced from Taiwan, which has been getting into trade scuffles with China as of late. Taiwanese imports also preclude the creation and security of US manufacturing jobs, among other economic factors. Apple’s interest in home-grown chips could bode well for domestic manufacturing, even if it’s at a much smaller scale than some would hope for.
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