The TSMC building that will soon be built will manufacture the 4nm and 3nm chips.
In addition to U.S. President Joe Biden, Cook was present at the TSMC investment announcement in Arizona. And now these chips may proudly bear the Made in America stamp, thanks to the labor of so many, added Cook. This is a very important time in history.
It only just got started today. Today, we're fusing the know-how of TSMC with the unmatched inventiveness of American labor. We are sowing our seed in the Arizona desert in an effort to build a better, brighter future. And we at Apple are honored to support its development.
All of the chips used in Apple's iPhones, iPads, Macs, and other products are produced by TSMC. Chips are now mostly produced in Taiwan, but as Apple looks to transfer more production here, TSMC is constructing two plants in Arizona. The first factory will open in 2024, and the second in 2026, according to TSMC's $40 billion budget.
When it debuts in 2024, one of TSMC's plants in Arizona will start making 4-nanometer chips. Apple will use around a third of the 20,000 wafers produced by TSMC each month. The facility will eventually be used by TSMC to produce even more sophisticated 3-nanometer processors for Apple.
It didn't take long to receive confirmation of Apple's plans for domestic chip production. Apple will purchase chips built at TSMC's planned facility in Phoenix, Arizona, according to company CEO Tim Cook. Cook did not specify how those chips will be used, but it is anticipated that the 4- and 3-nanometer components will be employed in the upcoming iterations of the iPhone, Mac, and other important devices. The biggest client of TSMC at the moment is Apple.
Production is anticipated to begin at the Phoenix facility in 2024. A second facility is anticipated in 2026 as a result of rising demand. They will produce roughly 600,000 chip wafers annually when combined. TSMC will invest $40 billion in the factories, but thanks to the CHIPS and Science Act, which was designed to encourage US semiconductor production, the government will partially finance their construction.
Additionally, Intel is constructing plants in Ohio and Arizona. It has expressed interest in producing Apple's components and plans to act as a foundry for other businesses wishing to contract out chip production. Depending on Intel's ability to stay up with foundries like TSMC, which frequently spearhead the movement towards next-generation chip production methods, that may or may not happen.
The production will only be a small part of the full capabilities of TSMC. According to CNBC, the Taiwanese company produced 12 million wafers in 2020. However, according to the National Economic Council, that ought to be sufficient to meet US demand. That may ease chip shortages, provide employment, and lessen American reliance on imports.
Even though the plants won't be operational for another two years, the announcement of the expansion is timely. Due to China's COVID-19 regulations, Apple has issued a warning about production delays for the iPhone 14 Pro. The impact of those restrictions would have been lessened if American facilities had been used. Even with TSMC's growth, many components may still be produced abroad, but there may soon be a higher likelihood that Apple devices will arrive at your door on schedule.