TSMC US Facilities not Likely to Produce Chips for Apple’s Latest Products

Taiwan Semiconductor Manufacturing Company (TSMC) will not be producing advanced chips for Apple in the US anytime soon. In a recent news article by appleinsider, TSMC US facilities are lagging five years behind Taiwan in producing the latest chips for Apple products. 

In March, TMSC announced plans to invest $100 billion in the US, following Apple’s plan to invest $500 billion in US manufacturing. TSMC has its active Arizona chip foundry operating under 4-nanometer chip processors. The second Arizona plant is in line to start operating by 2028. This new plant will produce 3-nanometer chips. The third one is still under planning for the production of 2-nanometer chips.

According to a report by Nikkei, this third plant will take longer than 2030 to operationalize. The report also finds that if this plant is operationalized according to the proposed plan, it will still be five years behind Taiwan’s production facilities.  

iPhone 18 Pro Launch

The iPhone 18 Pro models will be released in 2026 using A20 Pro chips made in a 2-nanometer production process. TSMC is working on perfecting the 2-nanometer process for mass production. However, this production test is taking place in Taiwan due to an operational gap between the US and Taiwan facilities. 

Silicon Shield 

Silicon Shield is a theoretical concept by Taiwan, according to which the US will protect the country against a Chinese invasion due to the country’s second-largest semiconductor manufacturing capacity. Taiwan is constantly under threat of the One China principle, which means Taiwan is an inseparable part of China. As TSMC initiated the semiconductor facilities in the US, Taiwan is under constant pressure that it will lose its shield if the US loses interest in the country. 

If the US-based TSMC plants are operationalized for Apple, it will ease the manufacturing of Apple products as the main component, semiconductor chips, will be closer to home.

The recent report by Nikkei indicates that Apple’s new products require more refined processing plants for the semiconductor chips. With the pace of development in the US, it is not likely soon that Apple could rely on the chips manufactured in US foundries for its latest products. Even if the under-construction foundries are completed, they will continue lagging behind Taiwanese foundries. There is no clear roadmap by the TSMC to fill this gap, though its major partner Apple desperately wants this to happen soon.