TSMC Starts Mass Production of Apple’s First U.S.-Made A-Series Chips for iPhone, Achieving Significant Milestone at Arizona Facility

Apple and TSMC are making significant strides in semiconductor manufacturing by collaborating to produce chips domestically in the United States. This partnership has involved extensive testing, and TSMC is actively seeking to increase its chip volume for Apple. A recent report indicates that TSMC is on the verge of commencing mass production of Apple’s A-series chips, marking a noteworthy advancement for the company as it enhances its operational footprint beyond its traditional base in Taiwan.

Upcoming Mass Production of Locally Manufactured iPhone Chips

According to a new report from Nikkei Asia, TSMC is set to initiate the mass production of Apple’s A-series chips in the United States shortly. These chips are expected to be utilized in older iPhone models or in new devices that do not demand premium performance levels. The report highlights that the preliminary production tests at TSMC’s facility near Phoenix have reached completion, allowing the company to advance to the next production phase.

Notably, the report suggests that these chips may enter full-scale production this quarter, pending the final quality assurance checks.

For context, our previous coverage indicated that Apple is collaborating with TSMC to create A16 Bionic chips specifically for older iPhone models. For instance, the A16 Bionic is slated for use in the iPhone 15 and iPhone 15 Plus. Additionally, the production mix will include the S9 chip, which represents the second type of chip TSMC will manufacture for Apple at its new Arizona site.

The S9 chip, which debuted with the Apple Watch Series 9, also powers the Apple Watch Ultra 2. This upcoming production signifies a historic milestone for Apple as it marks the first instance of the company producing chips domestically. Furthermore, this development is crucial for TSMC, which is already catering to other clients, such as AMD, at its Arizona facility. As TSMC’s production capacity continues to expand this year, the implications for Apple’s cost structure remain to be seen. What are your thoughts on the localized chip production? Will it offer cost advantages for Apple? Share your insights in the comments below.

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