Apple has started producing its A16 chips in the United States. This marks a significant change in the tech giant’s supply chain strategy. Taiwan Semiconductor Manufacturing Company (TSMC) leads the project at its new Arizona facility. This shift highlights a growing effort to reduce reliance on overseas chip production.
TSMC Launches U.S. Chip Manufacturing
TSMC’s Arizona facility started production in September 2024. Construction on the plant began in 2020 to boost U.S. chip manufacturing. While initial production is small, the facility uses the advanced N4P process. This is the same technology used in Taiwan. The N4P process is an improved version of the 5nm technology that powers Apple’s A16 chip.
Apple’s A16 Chips Now Made in Arizona
Apple is TSMC’s first major client in Arizona. The company is producing A16 chips, which were first used in the iPhone 14 Pro. Right now, production is small, but more chips will be made soon. These Arizona-made chips will likely power future iPhones and iPads.
Impact on U.S. Tech Industry
This project is part of a larger push to strengthen U.S. chip manufacturing. The Arizona plant benefits from the $39 billion CHIPS for America Fund. The initiative aims to make the U.S. a leader in semiconductor production. Once fully operational, the facility will produce a large number of chips for various industries.
Although the Arizona plant’s output is slightly behind TSMC’s Taiwan facilities, experts expect this gap to close soon. This move strengthens Apple’s supply chain while boosting U.S. semiconductor production.
Apple’s decision to make A16 chips in Arizona marks a key milestone for U.S. tech. As production scales, this project could reshape the U.S. semiconductor landscape.
