Apple Shifts Supply Chain to US
Apple has reportedly secured 100 million US-made chips from TSMC's Arizona facility and announced plans to begin assembling Mac mini computers in Texas. The move is part of a broader strategy to "nearshore" critical component manufacturing, enhancing resilience against geopolitical and supply chain shocks in Asia.
- The TSMC Arizona site represents a total investment of over $65 billion, with plans for a "gigafab" cluster that includes multiple fabs, two advanced packaging facilities, and a research and development center. - The first Arizona fab began producing 4nm chips in late 2024. Production of more advanced 3nm and 2nm chips is targeted for 2027 and 2029, respectively, with the timeline for the second fab having been accelerated from an original 2028 target. - This domestic chip production is supported by the U.S. CHIPS and Science Act, which has provided TSMC with up to $6.6 billion in direct funding and up to $5 billion in loans. - The Mac mini assembly will be located at a Foxconn facility in Houston, Texas, which already assembles Apple's AI servers. This move is part of an expansion that will double the footprint of Apple's Houston campus. - While the Houston facility will serve domestic demand, the majority of Mac mini production will continue to take place in Asia, making the Texas operation a complement to, not a replacement for, existing supply chains. - Apple is also establishing a 20,000-square-foot Advanced Manufacturing Center in Houston to offer hands-on training in advanced manufacturing techniques to students and supplier employees. - This "nearshoring" is part of a wider "China Plus One" strategy for Apple, which includes significant investments in expanding iPhone production in India and manufacturing other products like AirPods and iPads in Vietnam to increase supply chain resilience. - Beyond chip fabrication, Apple's U.S. investments extend to other component suppliers, including a new $4 billion GlobalWafers facility in Sherman, Texas, for silicon wafers and a $7 billion Amkor packaging facility in Peoria, Arizona, where Apple will be the largest customer.
