TSMC's US Chip Factories: Five Years Behind Taiwan and What It Means for Apple

TSMC's US chip production facilities are currently lagging about five years behind its Taiwan operations. The company plans to start operations at its second Arizona plant by 2028, which will produce 3-nanometer chips. A third facility is expected to produce 2-nanometer chips by the end of the decade, 2030. This lag means that Apple's future iPhone 18 Pro models, which are expected to use a 2-nanometer production process in 2026, will have to source these chips from TSMC's Taiwan facilities. The active Arizona facility is currently producing A16 chips under an N4 four-nanometer process and possibly the S9 SiP for the Apple Watch Series 9. TSMC's expansion into the US helps diversify production and minimize supply chain disruptions, but it also poses a strategic risk to its Taiwan operations in terms of global importance.