Apple’s iPhone 16 series may be dominating the headlines, but there’s an even more significant development happening behind the scenes. Apple has taken a major step toward achieving self-sufficiency in chip production, with its A16 chips now being manufactured at TSMC’s Fab 21 facility in Arizona, USA. This strategic move could have far-reaching implications for both Apple’s supply chain and its future devices.
TSMC’s Arizona Facility Kicks Off U.S. Production of Apple’s A16 Chips
For the first time, Apple’s A16 chip, which debuted in the iPhone 14 Pro models, is being produced in the United States. The chips are being made at TSMC’s Fab 21 in Arizona, a milestone in Apple’s localization efforts. Despite this new location, the U.S.-made chips utilize the same 4nm process as those produced in Taiwan, which is often referred to as an advanced version of the 5nm process family. Industry insiders like Tim Culpan note that while the production numbers are small for now, they represent an important first step in Apple’s broader plan to diversify its manufacturing base.
From Small Beginnings to Big Ambitions
While the Arizona facility is still in the early phases of chip production, there’s potential for significant growth. According to Culpan’s sources, the current production represents stage one, with a gradual increase expected over time. If all goes as planned, TSMC’s U.S. facility could ramp up production to hit its targets by mid-2025. While it’s currently behind TSMC’s Taiwan plant in terms of output, rapid progress suggests it could reach parity within months.
Which Apple Devices Will Feature U.S.-Made A16 Chips?
Though no official announcements have been made, speculation is already swirling about which Apple devices will incorporate these U.S.-made A16 chips. One potential candidate is an upcoming iPad, though Mark Gurman has ruled out the iPad Mini as a possibility for this year. Another likely option is the next-generation iPhone SE 4, which could arrive early next year with these domestically produced chips under the hood. As production ramps up, these chips may become a key component in Apple’s future lineup.
What This Means for Apple’s Supply Chain
Apple’s decision to manufacture chips in the U.S. isn’t just about diversification; it’s a critical step toward strengthening its supply chain and reducing reliance on overseas production. As global supply chain disruptions continue to affect industries worldwide, Apple’s move toward localized manufacturing could help the company mitigate risks, ensuring a more stable and efficient production process. This could position Apple to better navigate future challenges and continue delivering cutting-edge technology to its customers.
