A new administration in the US is set to take office, focusing on encouraging domestic manufacturing instead of overseas production. Apple appears to be well-positioned for this shift, having reportedly increased its chip production within the United States.
TSMC Arizona Now Manufacturing Two Chips for Apple
According to Tim Culpan in Culpium:
TSMC Arizona has secured a second product from Apple. Alongside the A16 processor for iPhones, which I mentioned in September, the facility is now producing System-in-Package (SiP) components for the Apple Watch, as per my sources. This component is believed to be the S9 SiP (I have to admit, I’m not entirely certain, but I’m 99% confident it’s the S9). Keep in mind that TSMC Arizona operates at N4, part of the N5 series of process nodes, while the S9 is manufactured in Taiwan at N4, representing a variation of the A16, making this development logical.
While adding a single Apple Watch SiP to its US production may not seem significant, as Culpan notes, this marks just the second chip Apple is producing at TSMC Arizona.
The transition from one chip to two effectively doubles the previous output. Apple will likely highlight this achievement in an upcoming press release—potentially following President-elect Trump’s inauguration later this month.
Apple’s Increased US Investment Likely Related to Tariff Avoidance
The Trump administration is anticipated to implement stringent tariffs on imported goods, but Apple seeks to sidestep these financial challenges.
The reasoning? Imposing tariffs on Apple, a domestic enterprise, could undermine its competitiveness against international technology giants such as Samsung from Korea.
This argument largely benefitted Apple during Trump’s initial term, during which the company also took significant steps to enhance its investment in US initiatives.
The latest news indicates that Apple is adopting a similar strategy in anticipation of Trump’s inauguration, and we can expect further announcements regarding US-centric projects in the coming years.
What are your thoughts on Apple’s expansion of chip manufacturing in the US? Do you foresee more developments like this in the future? Share your opinions in the comments.
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