Apple looking to buy chips from US & Europe to diversify supply chain

Apple looking to buy chips from US & Europe to diversify supply chain

American tech giant Apple is reportedly planning to begin buying semiconductor chips from factories in the US and Europe, as per a report citing comments from CEO Tim Cook during an internal meeting.

The iPhone maker has already decided to buy chips from an Arizona-based plant, which will begin production in 2024, implying that Apple may start using those chips in two years’ time, as per Cook.

He added that the company is hoping to source from Europe as soon as the plans commence.

Taiwan Semiconductor Manufacturing Company, or TSMC, is a major supplier to Apple for its customized chip, like the M2 chip, used in its latest MacBooks and the A-series processors in its smartphones.

Most of TSMC’s establishments are in Taiwan, and it currently has one advanced facility under construction in Arizona, which is expected to begin production by 2024.

It is suspected that Apple is planning to buy chips from the TSMC, given its relationship with the chipmaker.

However, it is not the only company building a site in the city, with tech giant Intel also planning to construct an additional factory in Arizona set to open in 2024. This comes after the US government recently passed legislation for investing more than $50 billion into domestic semiconductor production.

Intel, which is the largest chipmaker in terms of revenue, stated that it plans on developing chips for other businesses instead of making only for its own processors.

The complete details about the next supplier to Apple in the US and Europe and the reason behind the move are clear, which is that the group is exploring purchasing production capacity outside of Asia.

Moreover, it is also looking to diversify other parts of its supply chain, having increased iPhone production in India in the last few years. In 2020, Apple started production of AirPods in Vietnam, and it has been reported that the same is being done for iPads, MacBooks, and Apple Watches.

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Meghna Singh

An English Literature graduate, Meghna Singh ventured into the profession of content development to incorporate her knack for writing articles across verticals including technology, healthcare, business, and alike for News Origins and Newsorigins. She has also completed her MBA in Tourism and worked as a content creator in the field of product development.