Apple Boosts U.S. Production as TSMC Starts 4nm S9 Chip Manufacturing for Apple Watch in Arizona

TSMC has officially commenced the production of a new Apple chip in the United States, specifically designed for Apple’s wearable devices. This marks a significant expansion of Apple’s manufacturing footprint in the region, as the technology giant continues to broaden its range of chips produced by TSMC, its primary supplier. Recent reports indicate that the latest chip in production is the S9 chip for the Apple Watch, which is being fabricated at TSMC’s Arizona facility.

TSMC’s 4nm S9 Chips: Powering the Apple Watch

According to insights from technology columnist Tim Culpan, TSMC is now manufacturing the Apple Watch’s S9 System-in-Package (SiP) chip at its Fab 1 plant located near Phoenix, Arizona. This facility is not unfamiliar with Apple products, as it already produces the A16 Bionic chip used in the iPhone 15 and iPhone 15 Plus. Apple’s journey into U.S. chip production began in September of the previous year, and while the A16 Bionic is an established chip, it remains an integral component of Apple’s product lineup. There is potential for this new S9 chip to also be utilized in future Apple releases.

The S9 chip made its debut with the launch of the Apple Watch Series 9 in 2023, sharing technology traits with the A16 Bionic chip. Both chips leverage TSMC’s advanced 4nm process, enhancing computational capabilities and graphical performance over previous iterations. This N4 technology will facilitate scaled-up production at the Arizona site, which currently does not manufacture the Series 9 model, although the chip is utilized in Apple’s Ultra lineup.

TSMC’s endeavors are not limited to Apple, as the company is also engaged in producing chips for AMD. Reports indicate that TSMC has begun manufacturing AMD’s Ryzen 9000 “Granite Ridge”CPUs, showcasing the company’s commitment to expanding its production capabilities. The Arizona plant represents TSMC’s first manufacturing site outside Taiwan, and while current production capacity is modest, the facility’s operations are set to grow.

Initial estimates suggest that the Arizona facility can produce approximately 10,000 wafers each month, servicing Apple, AMD, and other clients. Plans for the second phase of this facility aim to significantly increase output, potentially exceeding 24,000 wafers per month. Stay tuned for further updates, as we will provide more insights into TSMC’s production developments in Arizona.

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