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Apple Supplier TSMC opens Advanced Chip Factory in Arizona

Apple supplier TSMC, which manufactures the A-series chips used in Apple’s devices, will shortly announce plans to build an advanced Arizona chip factory The Wall Street Journal.

TSMC is expected to announce plans on Friday after the decision was made at a board meeting on Tuesday. The factory could not be operational until the end of 2023 at the earliest.

The new TSMC plant would produce five-nanometer chips, which are the fastest and most energy-efficient chips currently available, said one person, knowing TSMC’s plans The Wall Street Journal.

Apple’s upcoming A14 chips, developed for the 2020 iPhone models, will use TSMC’s 5-nanometer technology. Production is scheduled to begin in the second quarter of 2020.

It is currently unknown whether TSMC will receive financial incentives from the United States to build a factory in Arizona and how many jobs the factory will bring. A typical TSMC factory employs thousands of people.

TSMC had spoken to US officials and Apple about a US chip factory for some time, but the talks “gained momentum” given concerns over the fragility of the Asian supply chain.

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