Apple Prepares to Get Chips from US Factory, Expand European Supply

Apple is preparing to start sourcing chips for its devices at a plant being built in Arizona in the US, Bloomberg News reported on Tuesday. The company may also increase its supply of chips from European plants, the report said, due to Chief Executive Officer Tim Cook’s comments at an internal meeting in Germany with local engineering and retail staff.

The Cupertino company declined to comment when contacted by Reuters. according to reportsCook was likely referring to the Arizona plant that will be operated by Taiwan Semiconductor Manufacturing (TSMC), the world’s largest contract manufacturer and a major supplier to Apple.

Last year, TSMC said it had started construction on a site in Arizona where it planned to spend $12 billion (roughly Rs. 98,000 crore) to build a computer chip factory, and plans to start volume production of chips using its manufacturing technology. 5 nanometers. in 2024.

Earlier this month, TSMC also said it was building a building that could serve as its second chip factory in Arizona.

In October, the world’s largest contract chipmaker, reported an 80 percent increase in annual profit for the July-September period of 2022, the strongest growth in two years. However, TSMC has also reduced capital spending by at least 10 percent this year. TSMC, Asia’s most valuable listed company, said it was serious about planning investments for 2023, but still expected a “year of growth”.

The United States has been encouraging foreign technology firms to manufacture domestically and has supported domestic research, development and manufacturing after passing its CHIPS Act.

Last month, Apple said it would invest in new solar and wind projects in Europe and asked its suppliers to reduce the carbon footprint associated with the production of iPhones and other products.

The company by 2020 had committed to decarbonizing its entire business, including products and its supply chain – from Vietnam to Brazil – by 2030.

© Thomson Reuters 2022

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