In a significant move for the semiconductor industry, Apple has announced plans to purchase chips manufactured by TSMC in the United States, starting in the latter half of 2025. This partnership is expected to bolster domestic chip production efforts and support the broader ambitions for a revitalized U.S. semiconductor landscape.
TSMC's establishment of production facilities in the U.S. comes with challenges, notably a 30% increase in production costs for the 4nm chips, a situation that could lead to higher prices for its American clients. Nevertheless, TSMC's initial Phase 1 aims for a wafer output of 20,000 units per month, with major clients such as Apple, Nvidia, AMD, and Qualcomm already lined up for supply. One major hurdle for TSMC is the absence of established semiconductor supply chains within the U.S., making operations more costly.
Looking ahead, TSMC has even grander plans for Phase 2, which anticipates the production of advanced 2nm chips by 2028. However, these ambitious goals currently remain uncertain. Concurrently, two additional semiconductor fabs are being constructed in the Phoenix area, with one expected to begin 2nm chip manufacturing by 2028. Meanwhile, TSMC's facilities in Taiwan will likely initiate mass production of 2nm chips in the second half of 2024 and could advance to producing 1.6nm chips by 2028. The significance of these diminishing process nodes lies in their ability to decrease transistor sizes, leading to higher transistor density and ultimately enhancing the performance and efficiency of the chips.
Overall, as the push for domestic chip manufacturing continues amidst global supply chain upheavals, Apple's partnership with TSMC reflects a pivotal moment in the evolution of the U.S. semiconductor sector.
