Apple Silicon Boost: TSMC to Invest an Additional $100 Billion in U.S. Chip Production

TSMC Plans $100 Billion Expansion in the U.S. with Four New Arizona Factories

The U.S. Department of Commerce has announced that TSMC is set to increase its investment in the United States by $100 billion, aiming to establish four new factories in Arizona. This will bring the total investment to $265 billion. CEO C.C. Wei confirmed these plans during the company’s financial results presentation, stating that the expansion will include production lines for chips engraved at the equivalent of 2 nm to “meet the strong multi-year demand from our key U.S. customers.” Commerce Secretary Howard Lutnick welcomed the news, highlighting that it “will create tens of thousands of jobs in the United States and bring advanced semiconductor manufacturing back to American soil.”

Apple’s Upcoming Chips and TSMC’s Current Production Plans

This year, Apple is expected to unveil its first Apple Silicon chips using TSMC’s N2 process technology: the Apple A20 Pro and Apple M6 chips. These will be integrated into future models of iPhones, iPads, and Macs, with announcements anticipated as early as the fall season. However, these chips will be manufactured in TSMC’s Taiwanese facilities, as the first American production line is not expected to open until 2030. By the time this U.S. factory becomes operational, Apple will likely have moved on to even more advanced technology in its products, with expectations of transitioning to 1.4 nm for the A22 Pro and M8 chips by 2028. This timeline is influenced by the Taiwanese government, which mandates that TSMC reserve its latest generation engraving technology for its facilities on the island of Taiwan, serving as a safeguard against potential Chinese invasion.

Potential Shift in Apple’s Chip Production to the U.S.

Apple may soon start producing its latest generation chips in the United States, albeit through a different partnership: last month, Donald Trump confirmed that Apple had signed with Intel for the production of its ARM chips in the U.S. According to rumors, production could start as early as next year. Currently, Apple relies solely on TSMC as its exclusive supplier of Apple Silicon chips, which limits its negotiating power.