Tensions between China, the United States and the Western world in general have increased significantly in 2024. Whether because of customs duties, vetoes by American companies… Apple is aware of thisand although they know that the work being done in China is unique, they are trying to diversify. For example, with iPhone factories in India and the recent inauguration of a chip factory in the United States.
In the midst of this transition between China and the West, Apple decided to take a bold step in its chip production strategy. The Cupertino company closes the manufacturing loop on American soil. Processors that will go into products that Apple currently offers for sale, such as the iPhone 15.
TSMC and Amkor: the alliance that changes the game for Apple
Taiwan Semiconductor Manufacturing Company (TSMC) is Apple’s main chip supplier. And with Apple, they made a decision that will change the game: expand its chip manufacturing at its Arizona factory. But TSMC will not be alone. It has partnered with Amkor Technology, a US company, to add advanced chip assembly and testing capabilities.
What does this mean? It’s simple: Apple’s A16 chips will be “Made in USA” from start to finish. The TSMC factory in Arizona It began operating last September after four years of construction. Now, with Amkor in the equation, the process will end in the same place.
While TSMC is responsible for manufacturing the chip itself, Amkor will handle the assembly. Th is last step is crucial
A multi-million dollar investment with government support
This strategic change does not happen alone. TSMC has invested massively in its expansion in the United States:
- Initial investment of 12 billion dollars in 2020
- Additional $6.6 billion grant from the U.S. Department of Commerce
- Construction projects three floors in total in Arizona
TSMC’s manufacturing facility is located outside of Phoenix, Arizona.
For its part, Amkor will invest around $2 billion in its new packaging plant, creating around 2,000 new jobs. What is clear is that The American government itself has every interest in not being 100% dependent on China.. And even though manufacturing in this eastern country is still necessary and where the most advanced production is located, having an A16 chip factory opens the door to continue increasing production independently.
Amid growing trade and geopolitical tensions, self-sufficiency has become a priority.
The arrival of Amkor with TSMC will begin to be felt throughout the first half of 2025, since currently the Arizona factory It is still in the testing phase producing a small but significant number of A16 chips.
The question that remains is: will other tech companies follow Apple’s lead? And more importantly,How will China respond to this change in the global technology landscape? One thing is certain: the world of technology is evolving and Apple is paving the way for a new era beyond production in China.
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