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Apple Plans to Purchase Chips From TSMC’s Arizona Plant

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Apple Plans to Purchase Chips From TSMC’s Arizona Plant

Apple CEO Tim Cook has reportedly said the company will purchase chips from a plant in Arizona, a major step toward supply chain diversification.

Apple relies on TSMC exclusively for the manufacture of its custom silicon. While Apple has relied on TSMC for its iPhone and iPad chips for years, the company announced its plans to transition its entire Mac lineup to its own custom silicon, chips TSMC continues to manufacture.

According to Bloomberg, Cook has said Apple will source chips from TSMC’s new factory:

“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,” Cook said.

As CNBC points out, TSMC recently announced it was going to establish a second factory in Arizona to meet “strong customer demand.”

Given the importance of TSMC’s role in Apple’s products, it’s not surprising Apple would be moving to source chips from the US plant. Taiwan is in a precarious position, with the threat of invasion by China.

Apple is not the only company looking to diversify its supply lines away from Taiwan. MediaTek recently signaled it would be open to moving some manufacturing away from the island.

Apple Plans to Purchase Chips From TSMC’s Arizona Plant
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