Apple expects to use US made chips by 2024
Hardware

Apple expects to use US-made chips by 2024

As TSMC’s largest customer, Apple in the US is not excluded from the trend towards geographic diversification in chip manufacturing, as CEO Tim Cook made clear during his business trip to Germany. Apple expects to use chips made in the US in Arizona as well as Europe by 2024 should such an opportunity arise.

    Image source: Apple

Image source: Apple

“We’ve already made the decision to start purchasing products from the Arizona facility, which will be operational in 2024, so we have no more than two years until this moment,” That’s what Tim Cook said loudly at a meeting with Apple employees in Europe Bloomberg. Since the facility he mentioned belongs to Arizona, one can only assume that it is the TSMC factory under construction, which is expected to process 20,000 silicon wafers per month with 5nm products starting in 2024. Such volumes from Apple will clearly not be enough to meet the main needs for components, not to mention the loss of relevance of the 5nm process technology in the “most advanced” status. However, some minor components for Apple may be made in the USA.

Tim Cook added that he is confident in Apple’s ability to get European-made chips because “Plans for the emergence of such companies are becoming more and more obvious”. Again, this could relate to the alleged possibility of building a TSMC facility in Germany. In either case, Apple is unlikely to be able to rely on Intel’s contract manufacturing services for its processors, since it has almost completely abandoned the use of off-the-shelf Intel-designed processors in its personal computers, and this contractor has almost no experience in manufacturing them Arm compatible components. Keep in mind that Intel already has facilities in Arizona and is building new ones, and it’s also building a facility in Germany that will serve third-party customers.

In his address to employees, Tim Cook stated that 60% of the processors shipped to the world market are now manufactured in Taiwan. Strategically, as he explained, this is not very profitable and good. Apple managed to build the Mac Pro in Texas, but the company’s prime contractors still work in Asian countries, even if we’re not talking about the dominant China in this regard. TSMC is reportedly planning to build a second 3nm contract manufacturing facility in Arizona, but it certainly won’t be ready to take orders from Apple in 2024. Tim Cook explained that the production capacity for the manufacture of silicon components in the USA and Europe is being actively expanded, since significant investments are being made for this purpose.

About the author

Dylan Harris

Dylan Harris is fascinated by tests and reviews of computer hardware.

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