Apple’s Microchips Will Be Manufactured in the US
In June 2020, Apple shared its plans to shift its Mac computers from using Intel processors to its personalized chips, Apple Silicon. Recently, Apple announced that they will use microchips designed and produced in the US. Our expert shares the context behind Apple’s reasoning and its long-term impact on the American and global economy.
Apple’s microchips
Since 2020, Apple has been creating its chips independently and outsourcing its production to third-party foundries like Taiwan Semiconductor Manufacturing Company (TSMC).
Based on the ARM architecture, Apple’s chips provide advantages over conventional x86 processors. Apple Silicon chips prioritize power efficiency, leading to extended battery life and improved performance. They provide superior hardware and software integration, resulting in faster and more responsive operation.
And finally, they help Apple to enhance control over the performance and design of their products.
TSMC invests in the US
Although TSMC (outsourced chip producer) originates from Taiwan, it holds a notable presence in the US. It has pledged to invest billions of dollars in a fresh chip manufacturing establishment in Arizona.
TSMC’s investment in the US is consistent with Apple’s objective of endorsing domestic job growth and supporting American manufacturing. With a whopping $12 billion earmarked for a new chip manufacturing plant, TSMC is set to generate thousands of jobs and contribute billions of dollars to the local economy.
The long-term impact
The utilization of microchips manufactured locally can greatly benefit the local economy in terms of job creation and boosting local manufacturing. Collaborating with firms such as TSMC can further stimulate the technology industry’s growth and attract investment, which could lead to a positive spillover effect on the overall economy.
Apple’s choice to use microchips manufactured at home has the potential to inspire other companies to invest in domestic production. By showcasing the advantages of collaborating with US-based manufacturers, Apple may encourage more significant investment in the manufacturing sector of the home country.
But Apple’s choice could also impact the worldwide supply chain. By reducing its reliance on suppliers from other nations, Apple can decrease its dependence on foreign corporations and potentially mitigate the risk of supply chain interruptions.
The usage of locally produced microchips could potentially affect the competition in the chip manufacturing industry. Other manufacturers like Intel and AMD will be under heightened competition with Apple’s customized chips of distinct advantages.
In general, Apple’s choice to utilize microchips produced locally is beneficial for the technology sector and the American economy. By promoting domestic manufacturing, Apple can contribute to employment growth and stimulate economic advancement, while simultaneously enhancing the functionality of its goods.
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