Technology company Apple is to buy semiconductor chips from a factory in the US state of Arizona as part of efforts to improve security of supply. This can be read on the supply management site.
“We have already decided to source our chips from a factory in Arizona. This plant will start in 2024, so we still have about two years ahead of us. And I’m sure we’ll be buying in Europe as well when the plans for that become clearer. I think over time you’ll see a significant investment in capacity in the US and Europe to displace silicon manufacturing,” said Apple CEO Tim Cook.
Rethinking supply chains
Apple’s manufacturing decision comes as the company seeks to redesign its supply chains outside of China, where iPhone production has been hit by lockdowns. At the same time, the US government is providing US$52 billion to boost onshore semiconductor production to reduce reliance on Chinese and Taiwanese production. Much of the US funding will likely benefit TSMC, the world’s largest chipmaker from Taiwan. This company wants to build a $12 billion chip factory in Arizona. Apple currently gets its chips from TSMC in Taiwan, but has tried to move some of its iPhone 14 production to India and Vietnam.
Source: Procurement management
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