Apple CEO Tim Cook has announced that the company will use microchips built in the United States at a new factory in Arizona. The factory will be owned and operated by Taiwan Semiconductor Manufacturing Company (TSMC), the largest foundry company in the world with over half of the global market share. TSMC produces the most advanced processors, including those used in the latest iPhones, iPads, and Macs.
“And now, thanks to the hard work of so many people, these chips can be proudly stamped Made in America,” Cook said at an event in Arizona. “This is an incredibly significant moment.” The factory is expected to produce 4-nanometer and 3-nanometer chips, which will be used in advanced processors such as Apple's A-series and M-series, as well as Nvidia's graphics processors.
The factory in Arizona will be partially subsidized by the U.S. government. Earlier this year, President Joe Biden signed the CHIPS and Science Act into law, which includes billions of dollars in incentives for companies that build chip manufacturing capabilities on U.S. soil. TSMC has said it will spend $40 billion on the two Arizona plants. The first is expected to be operational by 2024, with the second opening in 2026.
The TSMC plants will produce 600,000 wafers per year when fully operational, which is enough to meet U.S. annual demand, according to the National Economic Council. This will be a small fraction of TSMC's total capacity, which produced 12 million wafers in 2020.
AMD CEO Lisa Su has said that the company plans to be a significant user of the TSMC Arizona fabs. Intel has also said it wants to compete for Apple's business and is building chip factories in Arizona and Ohio, which are expected to be partially subsidized by the CHIPS act.
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