Apple benefits from US chip deal between TSMC & Intel

Apple could soon benefit more from US chip production. The background to this is a planned collaboration between the Taiwanese semiconductor manufacturer TSMC and the US corporation Intel. The goal is to ramp up chip production in the United States. This would also benefit Apple, as the company relies on TSMC's chips. Not everything has been finalized yet, but the direction is clear: more local production, less dependence on the Asian market.

Apple develops its own chips, but doesn't manufacture them itself. TSMC, one of the world's leading contract manufacturers in the semiconductor sector, is responsible for that. And this partner is now working with Intel to expand chip production in the US. In light of global trade conflicts, tariffs, and geopolitical uncertainty, Apple is trying to better protect itself. This affects not only Apple, but also other tech companies that rely on stable supply chains and predictable production.

TSMC brings know-how, Intel the infrastructure

According to a report by The Information, talks between TSMC and Intel are still ongoing. However, it has already been decided that there will be a joint venture. TSMC will hold a 20 percent stake. Intel and other US semiconductor companies will acquire the majority. TSMC will contribute technical expertise and personnel to train employees in the US and adapt production at Intel's factories. However, implementation will not be immediate. Many of the machines in Intel's existing factories are not compatible with TSMC's manufacturing processes. They must either be sold or scrapped. Production can only truly begin once new equipment is installed and qualified specialists are on site. This will take several years.

Apple invests heavily in US manufacturing

Apple itself has already pledged $500 billion to expand its manufacturing in the US. TSMC also plans to spend around $100 billion on new plants. Part of this sum will go towards the construction of chip factories in Arizona. The first TSMC factory in Arizona has already been completed and is scheduled to begin producing A16 processors in September 2024. A stable production rate is expected in the first half of 2025. However, this is currently only a small portion of Apple's total chip requirements (via The information).

Tariffs and economic pressure play a role

A key driver of this development are the tariffs introduced under Donald Trump's presidency. These tariffs burden international trade and lead to price increases. Increased US production could counteract this somewhat. Nevertheless, Apple will remain partially dependent on imports in the future, especially for components manufactured outside the US.

More Apple chips from the USA – but not immediately

Apple is facing a long-term change in its supply chain. The planned collaboration between TSMC and Intel is a first step toward greater independence from Asian production sites. Apple hopes this will bring more stability, reduced risks from political conflicts, and potentially lower production costs in the future. However, it will take some time before this happens. Retooling the factories, building new facilities, and training the workforce will take several years. Nevertheless, the direction is clear: Apple wants to bring a larger portion of its chip production to the US. The joint venture with TSMC and Intel is a key component of this. (Photo by Unsplash+ / Getty Images)