TSMC Brings 3nm Manufacturing to Arizona for Apple

TSMC Brings nm Production to Arizona for Apple
TSMC Brings nm Production to Arizona for Apple

There is a long and fruitful collaboration between Apple and TSMC. For TSMC's cutting-edge nodes, the Cupertino giant has always come first, and these chips have always come from Taiwan.

Let's Get to Know TSMC Company

When TSMC (TWSE: 2330, NYSE: TSM) was founded in 1987, it created the semiconductor Dedicated IC Foundry business model. TSMC has served approximately 535 customers and has produced more than 12.302 products for a variety of applications spanning various end markets including smartphones, high-performance computing, Internet of Things (IoT), automotive and digital consumer electronics.

However, in light of the current supply chain confusion, Apple and other businesses are looking for ways to diversify their chip resources. It is said that TSMC will begin producing 2024nm designs in early 3 at its factory in Arizona. Apple can then brag about using silicone made in America for the first time. But Bloomberg claims that this will likely be nothing more than an ad show.

A recent meeting with employees in Germany, including CEO Tim Cook, laid out Apple's goals. Bloomberg's well-known Apple correspondent, Mark Gurman, reported that TSMC manufactures 60% of all semiconductor products sold worldwide.

“No matter how you feel and think, the 60 percent coming from anywhere is definitely not a strategic position,” Cook said, according to Engadget. According to reports, TSMC will begin manufacturing chips for Apple at a new facility in Arizona to remedy this situation.

Although the company already has manufacturing facilities in Arizona, the new facility will produce 3nm. Additionally, the business will begin manufacturing 2024nm chips in 5 in Arizona.

Bringing some of its most advanced technologies to the United States is a big deal for TSMC. It is unclear when or if Apple will be able to purchase 3nm chips from the Arizona factory. According to reports, TSMC has started using this latest technique in Taiwan. The A15 chip in the next iPhone 17 is expected to use this cutting-edge node.

Future M2 chips will also include 3nm designs. But there may be no connection between the revelation that TSMC is bringing 3nm to Arizona and Apple's use of "US-made chips."

A Bloomberg Analyst claims that there is no doubt that Apple will use chips from Arizona, but that they will most likely not be 3nm. Tim Culpan of Bloomberg believes it's mostly a "symbolic gesture," according to 9to5mac. Rather than relying on TSMC for its most complex designs, Apple will likely use mature nodes for less complex components in its flagship smartphones, or SoCs for less prominent items.

These include the Apple Watch, Apple TV, HomePod, and AirPods.

Even if the plant in Arizona begins to manufacture either class M silicon or class A circuits for the iPhone, it will do so on a very limited level. TSMC's new facility is expected to produce 20.000 chips per month. In contrast, TSMC currently produces a total of 1,3 million chips each month in Taiwan.

Therefore, only 1,6 percent of this capacity will be offered by the new facility. In other words, this is more of a marketing move than anything else, as Bloomberg claims.

To give Apple credit, Tim did not specify which business in Arizona would manufacture the chips. But other factories in this state are owned by Intel. If it was Chipzilla he was implying, that would be a big announcement. However, given his long history with the company and its position as an industry leader in advanced nodes, it's clear that he's talking to TSMC.

In addition, there are rumors that the two companies have recently quarreled over pricing and that Apple has succumbed to the demands of its sole supplier.

It looks like the two businesses will stay connected, at least for the foreseeable future.

Still, Apple's decision to buy chips from outside Taiwan is an important one. Naturally, Nvidia and AMD are also important TSMC customers and are currently using 5nm TSMC technology for their latest CPUs and GPUs. After the Arizona plant expands its capacity, other businesses may also consider purchasing silicone domestically.

source: extremetech

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