Innovative Expansion in the US
Taiwan Semiconductor Manufacturing Company (TSMC), the world’s leading contractor for advanced semiconductor chips, has reportedly commenced production at its new manufacturing facility in Phoenix, Arizona. This strategic move marks a significant milestone in TSMC’s expansion into the United States, addressing growing demand for semiconductor manufacturing outside of Asia. Among the first to benefit from the Arizona facility’s capabilities is Apple, which is sourcing older-generation chips for its devices, including upcoming low-end iPad models.
Apple’s Strategic Sourcing Amidst New Releases
While Apple continues to innovate with its latest A18 Pro chipset manufactured in Taiwan, the Arizona plant focuses on producing the N4P chips—an advanced iteration of the 5nm process technology. This process has been previously utilized for the Apple A16 chipsets featured in the iPhone 14 Pro series. It’s anticipated that the chips produced at this new facility will power not only older iPad models but potentially the new iPad mini 7 and the 11th-Gen iPad, expected to be announced in October along with the new M4 Macs.
Progress and Future Plans
The initial production at TSMC’s Arizona plant has started with promising output, aligning with projected targets for the first half of 2025. This development is a positive indicator for the U.S. chip manufacturing sector, especially after overcoming early challenges such as cultural differences impacting the project’s timeline. The facility is part of a broader TSMC initiative to invest approximately $65 billion in three U.S. manufacturing sites, with substantial financial backing from the U.S. government through the CHIPS for America program. Looking ahead, TSMC plans to inaugurate a second factory by 2028, further solidifying its footprint in American semiconductor production.
