Apple could soon make Donald Trump very happy, and that’s good news

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In an internal meeting, which Bloomberg had access to, Tim Cook indicated that he would soon start manufacturing some of his chips in the United States, and is considering doing the same in Europe once the factories are ready. . A new step in her aim to be less dependent on China and Asia.



Former president and new presidential candidate Donald Trump must be rubbing his (little?) hands with satisfaction. On the occasion of an internal meeting in Germany, of which Bloomberg Indeed, Tim Cook reiterated that Apple will have some of the chips for its devices manufactured in the United States very soon.
More specifically, it will be an Arizona plant that should be operational from 2024, “so we have two more years to wait, maybe a little less”, be the boss of the American giant. He added that his company planned to apply the same strategy in Europe, but the factories would have to be ready for that. Indeed, the European Union is in the process of launching a program to restart semiconductor production on its territory in order to become less dependent on Asia. Intel has built one “plant” in Magdeburg, Germany, and research sites in France.

The shadow of China in particular, the weight of Asia in general


By opening up its supply chain to the United States (and later to Europe), Apple is honoring previous commitments to repatriate its operations to US soil where possible to create local jobs, but also to ensure and, above all, become less dependent on are from Asia and especially China. A central issue that Apple is actively addressing. To the point, moreover, that the iPhones, which will be marketed in the United States, can only be produced in India within three to five years.
Tim Cook also indicated this during this meeting “regardless of how you feel or think, with 60% [d’une production, NDLR] coming from only one place is probably not a strategic position”. He was referring to the fact that 60% of the processors produced in the world come from the small island of Taiwan.

Apple’s colossal appetites and needs


However, one question arises: will the Arizona plant be able to adequately meet the needs of the California giant? It should offer an initial capacity of 20,000 chips per month and allow them to be manufactured using a 5 nm etching process. However, the following Apple chips must be engraved in 3nm.

Two solutions are then possible, assuming that the factory is that of TSMC. The first is that the Taiwanese smelter could introduce its most advanced production processes to this plant earlier than expected. The second is that Apple could entrust this factory with the production of its least “efficient” chips, and therefore the least strategic ones.

One thing is certain: at 20,000 chips a month, the Arizona factory won’t be able to meet all of Apple’s demand for its best-selling products. Apple sells at least several million, even tens of millions of units of its less popular devices each quarter.

Unless we turn to “niche” products, such as the Mac Pro, which are already assembled in Texas. Also note that in the past when Apple released the first Silicon chips for the iPhone, some chips were made in the United States by Samsung at the time. So it’s finally almost a return to the sources.

Was Tim Cook talking about TSMC?


If we want to look for the little beast, by not explicitly pointing out TSMC, whose action jumped after this announcement, however, Tim Cook leaves a slight doubt. The Taiwanese company is building its first factory in the United States. Given the privileged relationship the two players have, and given TSMC’s technological advancements, it seems clear that the Apple boss was referring to this site.

However, Intel is also building a new factory in Arizona, which will also be completed in 2024. If Apple stops using Intel processors in its Macs, the Santa Clara founder’s boss has now repeatedly stated that he hopes to get Apple back as a customer in the next few years. Not so much to provide it with its processors as to produce Apple Silicon chips.
Indeed, as part of its new strategy, Pat Gelsinger’s company has opened its factories to outside customers. Tim Cook is unlikely to call on Intel right away, but who knows in the longer term.

For its part, however, TSMC is already considering manufacturing a second component plant in the United States, to increase its presence in North America – and to take even greater advantage of the Chips and Science Act and its $50 billion budget from incentives and financial support. A double strategic choice for the Taiwanese company, whose country of origin is increasingly arousing the appetite of China.

Source :

Bloomberg
 
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