Cook joined President Joe Biden onsite this week to celebrate its forthcoming contribution to US chip manufacturing. In an announcement first reported(Opens in a new window) 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(Opens in a new window) that Apple would be the new site’s largest customer. As Bloomberg pointed out(Opens in a new window) last month, this could be more of a marketing pivot than a technological one. We don't know exactly how many chips Apple will source from the Arizona fab, but it's unlikely to make a significant dent in the stock it already gets from TSMC's Taiwan sites. This could change if TSMC does indeed break ground on another Arizona fab as reportedly promised(Opens in a new window) at Tuesday's event.
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 starts out at a smaller scale than some would hope for.
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