Apple is preparing to start supplying chips for its devices from a plant under construction in Arizona, USA, which is an important step towards reducing the company’s dependence on Asian production, writes Bloomberg.
Chief Executive Officer Tim Cook made the announcement during an internal meeting in Germany with local engineers and retail staff as part of a recent tour of Europe. He also added that Apple could expand the supply of chips from factories in Europe.
“We’ve already made a decision to be buying out of a plant in Arizona, and this plant in Arizona starts up in ’24, so we’ve got about two years ahead of us on that one, maybe a little less,” Cook told the employees. “And in Europe, I’m sure that we will also source from Europe as those plans become more apparent,” he added at the meeting, which included Apple service chief Eddy Cue and Deidre O’Brien, head of retail and human resources.
Cook is likely referring to an Arizona factory that will be run by Taiwan Semiconductor Manufacturing Co., Apple’s exclusive chip-manufacturing partner. That plant is slated for a 2024 opening. And TSMC is already eyeing a second US facility, part of a broader push to increase chip production in the country.
It is worth noting that Intel is also building factories in Arizona, which will open in 2024. The chip maker has been Apple’s main supplier for years, but is unlikely to regain that business. Apple has replaced Intel processors in Mac computers and other products with its own components, and the chipmaker does not have a proven track record of producing other people’s designs.