Apple's New A16 iPad: US-Made Chip and Tariff Loophole

Summary

Apple recently unveiled a new base-model iPad equipped with the A16 chip, surprising many who expected an A17 Pro chip. The A16 chip is significant because it is being produced at TSMC’s new Arizona plant, which started manufacturing 4nm chips last year. This strategic move could help Apple secure a tariff exemption due to the use of US-made components, thereby maintaining the $349 price point for the iPad 11.

Key Points:

• A16 Chip in iPad: The new base-model iPad features the A16 chip, produced at TSMC’s Arizona plant.
• US Manufacturing: TSMC began producing A16 chips in small quantities at its Arizona facility, with production expected to ramp up in 2025.
• Strategic Play: Using US-made chips could help Apple avoid potential tariffs, maintaining the iPad 11’s affordable price.
• Production Timeline: Volume production of the US-made A16 chips aligns with the launch of the new iPad 11.