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Apple Supplier TSMC to Open Advanced Chip Factory in Arizona

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


TSMC is expected to announce the plans as soon as Friday after finalizing its decision at a board meeting on Tuesday. The factory could be up and running by the end of 2023 at the earliest.

The new TSMC plant would produce five-nanometer chips, which are the fastest and most power-efficient chips available today, a person with knowledge of TSMC’s plans told The Wall Street Journal.

Apple’s upcoming A14 chips designed for the 2020 iPhone models will use TSMC’s 5-nanometer technology, with production to begin in the second quarter of 2020.

At this time, it’s not known if TSMC is getting financial incentives from the U.S. to build a factory in Arizona, nor how many jobs the factory will bring. A typical TSMC factory employs thousands of people.

TSMC had been talking to U.S. officials and Apple about a U.S. chip factory for some time, but the conversations “gained momentum” amid concerns with the fragility of the Asian supply chain.

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