Apple is in the final stages of validating semiconductor chips produced by Taiwan Semiconductor Manufacturing Co. (TSMC) at its new facility in Phoenix, Arizona. This development signifies a pivotal move toward mass production, anticipated to commence later this quarter.
The Arizona plant is set to manufacture chips such as the A16 Bionic, currently utilized in the iPhone 15 and iPhone 15 Plus, as well as the S9 chip found in the Apple Watch Series 9 and Watch Ultra 2.
TSMC’s expansion into the U.S. aligns with the objectives of the CHIPS and Science Act, a U.S. government initiative aimed at bolstering domestic semiconductor manufacturing and creating local employment opportunities. In November, TSMC secured a $6.6 billion grant under this act to support its Arizona operations.
Looking ahead, TSMC plans to produce 4-nanometer chips in Arizona this year, with an eye toward advancing to 3-nanometer technology by 2028. The company has also committed to establishing a third semiconductor factory in Arizona by 2030, which will focus on producing 2-nanometer chips.
This strategic move not only strengthens TSMC’s presence in the U.S. but also enhances Apple’s supply chain resilience by diversifying its chip production sources.