Apple is already testing the initial batch of processors produced for its devices by TSMC Arizona, reports Nikkei Asia. To begin with, the tests intend to compare the Arizona output to see if the quality is similar to chips produced in TSMC’s cutting-edge fabs in Taiwan. If the chip quality verification testing does not encounter any hiccups, the source says that the first batch of mass-produced chips from the Arizona fab is expected to arrive at iDevice makers as early as this quarter. If this is the case, Apple will likely be TSMC’s first American customer to use locally made chips. AMD and Nvidia will likely follow suit soon, as they’re also running wafer test production there.
The entry of locally produced chips in the American market is a big win for the United States’ push for silicon independence, especially as it massively relies on Taiwan for the majority of its most advanced chips. Taiwan is located in a high-risk location, with the belligerent CCP-controlled China having the island in its sights. The island is also prone to natural disasters, which can disrupt semiconductor production and result in supply crunch situations.
However, even if Apple gives the go signal to TSMC and the latter starts making chips in Arizona, the processors still need to be shipped back to Amkor in Taiwan for packaging until TSMC completes its facility in Peoria, Arizona. But whatever the case, this is a significant push in the right direction for the U.S., especially as the Arizona fab has been delayed for about a year due to various issues. Aside from TSMC and Amkor, other suppliers to these companies, like LCY Chemical, are also setting up in Arizona. That way, they could stay near their client and simplify logistics.
Despite importing about half of its employees from Taiwan, it seems that the common American is also slowly benefitting from TSMC’s presence in Arizona, especially as it’s reported that the company has started aggressive recruitment from American universities. It has also partnered with the Arizona State University for workforce development and research, helping drive American innovation.
After what seems to be its initial success with Apple, the Arizona fab is expected to output chips using more advanced technology. TSMC will produce 3nm chips in the U.S., and Taiwan has already given TSMC the go-signal to manufacture 2nm chips abroad. With the CHIPS and Science Act now bearing fruit, the U.S. could once again appear on the semiconductor production world map and give it more stability in its silicon supply chain.
