TSMC has started making iPhone chips in the United States

Made in America chips are here, as the Taiwan Semiconductor Manufacturing Company has officially started making Apple's A16 processors at its newly constructed fabrication unit in Arizona. The A16 chips are built using TSMC's 5nm technology and are currently being produced in small quantities. TSMC plans to increase the chip production output after the fab's second stage is completed by mid-2025, as reported by independent journalist Tim Culpan.

The A16 Bionic processor by Apple has a great track record and is used in the iPhone 14 and iPhone 15 series currently. Speculations indicate that these Made in America chips could potentially be used in future iPad models and even the next iPhone SE.

The fabrication unit in Arizona is part of TSMC's massive $65 billion investment, with ambitions to build a total of three fabrication plants in Phoenix that will utilize cutting edge technologies such as 4nm, 3nm, and 2nm processes. The fabs are also being funded by the U.S. government's CHIPS and Science Act, which is aimed at making the United States capable of producing advanced semiconductors domestically and reducing reliance on Asia.

The construction of TSMC's first fab in Arizona started three years ago, in 2021, with the initial target for production set for this year. However, various challenges such as COVID-19, labor shortages, cultural differences between Taiwanese and American employees, and delays in the construction of the fabs have delayed the timelines for chip production. Now, the high-volume production of the 4nm chips is planned to begin in the first half of 2025.

For the second fab, chip production was originally expected to begin in 2026, which has now been pushed back to 2027 or 2028, depending on consumer demand as Made in America chips will be costlier, by up to 30%, according to previous reports. A lot of it will also depend upon additional grants by the U.S. government. Although, TSMC has currently completed foundational work and initial infrastructure for its second fab.

via Tim Culpan