Apple Begins Manufacturing iPhone Chips in the U.S., Avoiding China-Taiwan Tensions
Apple has reportedly started producing chips for future iPhones in the United States, marking a significant shift away from its reliance on overseas manufacturing, particularly in China and Taiwan. These new "Made in USA" chips will feature a 5-nanometer manufacturing process and could soon be a key component of future Apple products, such as iPads and iPhones sold worldwide, including in Spain.
For several years, beginning during Donald Trump’s presidency, the U.S. government has pressured tech companies like Apple to relocate critical component production, such as chips and processors, to the U.S. This push appears to be bearing fruit with the Taiwan Semiconductor Manufacturing Co. (TSMC) plant in Arizona, which is reportedly already producing Apple’s A16 chips. These processors could eventually be used in products like the iPhone SE.
Bloomberg journalist Tim Culpan recently reported on the Substack platform that A16 chips are now being manufactured in Arizona, utilizing a 5-nanometer fabrication process. This shift also helps Apple sidestep ongoing tensions between China and Taiwan, where much of its production has historically taken place. In addition to moving chip production to the U.S., Apple plans to manufacture the new iPhone 16 models in India, reducing its dependence on Chinese mass production.
While the U.S. government aimed to distance Apple from its longstanding partner, TSMC, full separation hasn’t occurred. However, the relocation of some production to American soil is a notable achievement. Currently, global powers are in a race to control chip manufacturing, and it's unclear whether this move will result in higher costs and, subsequently, higher prices for Apple products.
The A16 SoC (System on Chip) was first introduced two years ago in the iPhone 14 Pro. According to sources, it is now being produced in small but significant quantities at TSMC’s Fab 21 plant in Arizona. For now, these chips are used exclusively in the iPhone 14 Pro, 14 Pro Max, as well as the iPhone 15 and 15 Plus. However, they may soon be integrated into other models, such as the iPhone SE, which could be based on the iPhone 14 and released next year.
There is no official confirmation on which specific Apple products will feature these U.S.-made chips. It’s possible they could appear in upcoming iPad models or the iPad Mini, which Bloomberg analyst Mark Gurman speculates may be launched around October.
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TSMC’s Arizona plant, announced in 2022, began operations as planned in 2024. This facility joins TSMC’s other manufacturing site in Washington state. Additionally, another Apple supplier, Amkor, is set to open a complex near TSMC’s Arizona facility. Amkor will handle the packaging process, which involves adding a protective layer to the chips and preparing them for integration into circuit boards. However, this particular plant was not mentioned in Culpan’s report.