TSMC's $100B US Investment: A Mixed Bag for Apple's America-Made Chip Ambitions

TSMC's new $100B US investment could mean fewer advanced Apple chips made in America, as one of the most advanced plants may be cut from the plan.

3 months ago

Summary

TSMC's $100B US Investment and Apple Chips

Initial Announcement: In 2022, Apple announced plans for 'Made in America' chips as part of the US CHIPS Act. TSMC was to build several chipmaking plants in Arizona, with some production reserved for older Apple devices.
Delays and Uncertainties: The project has faced delays and questions about job creation and chip packaging processes. Mass production at the first plant was initially expected in 2022 but has been pushed back.
$100B Investment: The recent TSMC announcement of a $100B investment in the US lacks specifics, raising doubts about whether this is new money or previously planned. A key new element is the promise of US-based chip-packaging facilities.
Lack of Advanced Processes: Apple relies on TSMC's most advanced processes, which are only available in Taiwan. The Arizona plants were always intended to lag behind, making chips for older devices.
Potential Setback: Apple analyst Ming-Chi Kuo suggests the new deal involves cutting one advanced-node fab, potentially reducing the supply of US-made chips suitable even for older Apple devices. The flexible nature of the $100 billion investment allows TSMC to adjust spending based on future conditions.