Apple’s American-Made Chips from TSMC Arizona Plant Almost Ready – Final Checks Underway!

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TSMC building in Arizona.

Apple has commenced testing the first series of processors manufactured for its devices at TSMC’s new Arizona facility, according to a report by Nikkei Asia. Initially, these tests aim to ensure that the processors made in Arizona meet the same high standards as those produced at TSMC’s top-tier facilities in Taiwan. If these initial tests go smoothly, it is anticipated that mass production chips from the Arizona location could be delivered to Apple’s device manufacturers as soon as this quarter. Should this occur, Apple is set to be the first American company to incorporate domestically manufactured chips, with AMD and Nvidia expected to follow as they also begin testing wafers at the same site.

Introducing domestically produced chips to the U.S. market represents a significant victory for America’s efforts to achieve greater autonomy in silicon production, especially considering its heavy reliance on Taiwan for advanced chips. Located in a geopolitically sensitive area, Taiwan faces threats from China and is also vulnerable to natural disasters which could potentially disrupt semiconductor production and lead to shortages.

However, even if Apple greenlights the use of Arizona-made chips by TSMC, these processors will still need to be shipped back to Amkor in Taiwan for packaging until TSMC completes its own packaging facility in Peoria, Arizona. Nonetheless, these developments are a step in the right direction for the U.S., particularly since the Arizona facility’s launch had been delayed by approximately a year due to various challenges. Moreover, other suppliers like LCY Chemical are establishing operations in Arizona to be closer to their clients and streamline logistics.

Despite TSMC bringing about half of its workforce from Taiwan, the local American workforce is increasingly benefiting from TSMC’s Arizona expansion. The company has begun extensive recruitment efforts at American universities and has also partnered with Arizona State University for workforce development and research initiatives, fostering innovation within the U.S.

Following what appears to be a successful initial collaboration with Apple, TSMC’s Arizona factory is gearing up to manufacture chips using even more advanced technology. Plans are in place for the site to produce 3nm chips, while Taiwan has already approved TSMC’s plans to manufacture 2nm chips internationally. With the CHIPS and Science Act now yielding results, the U.S. is poised to reclaim a prominent spot on the global semiconductor production stage, enhancing the stability of its silicon supply chain.

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