Apple to use U.S. manufactured chips in major policy shift

Apple CEO Tim Cook announced the company will buy U.S.-made microchips at an event where American President Joe Biden also spoke, calling the move a "game-changer."

Cook called it "an incredibly significant moment."

Apple will be buying microprocessors made at a new Arizona factory.

The chip factories will be owned and operated by Taiwan Semiconductor Manufacturing Company (TSMC), which has over half of the global market share and produces the most advanced processors, including the processors in the latest iPhones, iPads and Macs.

These new plants will manufacture the 4-nanometer and 3-nanometer chips used for advanced processors such as Apple’s A-series and M-series and Nvidia's graphics processors.

While Apple and Nvidia design their own chips the manufacturing is outsourced to companies like TSMC and Samsung. 

Apple is keen to move its manufacturing out of China and Taiwan owing to political tensions and COVID disruptions.

TSMC at present does most of its production in Taiwan.

Biden approved the CHIPS and Science Act earlier this year, which offers billions of dollars as incentives to companies for moving their manufacturing to the U.S. The Arizona factories also stand to gain millions in government subsidies.

TSMC said it would spend $40 billion on the two Arizona plants with the one in Phoenix expected to start production by 2024 while the second will open in 2026.

When fully operational, the TSMC plants will produce 600,000 microprocessors per year.

The U.S. plants will be a small fraction of TSMC’s total capacity, which produced 12 million wafers in 2020.

More from Business

  • IDC 2025 discusses global disruptions, defence preparedness

    The International Defence Conference 2025 commenced on Sunday at Emirates Palace in Abu Dhabi, bringing together defence and security leaders, experts, and companies from around the world to discuss key challenges and opportunities in the sector.

  • Dubai Energy Council reviews carbon emissions progress

    Ahmed bin Saeed chaired the Dubai Supreme Council of Energy meeting on Sunday, which reviewed progress in carbon emission reduction technologies in alignment with the UAE’s Net Zero 2050 Strategy and the Dubai Carbon Abatement Strategy 2030.

  • OpenAI board rejects Musk's $97.4 billion offer

    OpenAI has rejected a $97.4 billion (AED 357 billion) bid from a consortium led by billionaire Elon Musk for the ChatGPT maker, saying the startup is not for sale and that any future bid would be disingenuous.

  • AD Ports Group reports net profit of AED 1.78 bln

    AD Ports Group has announced its preliminary unaudited financial results for the fourth quarter and full year ending December 2024, and saw revenue increase 48 per cent year-on-year (YoY) to AED 17.29 billion.

  • Air Arabia reports record AED1.6 bln profit in 2024

    Air Arabia has announced its financial and operational results for the full year ending December 31, 2024, posting a record pre-tax net profit of AED 1.6 billion, reflecting a four per cent increase compared to AED 1.5 billion in 2023.

News