You’re in all probability acquainted with TSMC (Taiwan Semiconductor Manufacturing Firm) by now. TSMC makes a few of Apple’s customized chips, also referred to as central processing models (CPUs) or system-on-a-chip (SoC). They’re a important Apple companion, making chips that energy iPhones, iPads, Apple Watches, and Macs.
After latest assembly between Trump and TSMC’s CEO on the White Home, TSMC introduced it plans to speculate as much as $100 billion within the US by constructing factories and packaging vegetation. For some perspective, TSMC simply launched its Q1 2025 earnings boasting a web income of $25.53 billion. Their first US plant is now operational in Phoenix, Arizona, with extra on the way in which.
When all is claimed and executed, the US vegetation will make use of about 6,000 folks. The concept is that home manufacturing would scale back prices and keep away from tariffs, proper? Not so quick.
The Phoenix plant began high-volume manufacturing of its 4-nanometer (4nm) course of expertise in late 2024 and commenced cranking out new Apple A16 and S9 chips in January. These chips energy the iPhone 15, iPhone 15 Plus, Apple Watch Collection 9, and the most recent entry-level iPad.
A minimum of some 3nm and 2nm chips might be produced in Arizona sooner or later. These 2nm chips are rumored to finally energy the iPhone 18 and probably the M6 technology of MacBooks and iPads. As we speak, there’s hypothesis that TSMC will improve prices on the 4nm chips produced on the Phoenix plant by as a lot as 30%. Why?
TSMC has not commented. Nevertheless, Financial Day by day Information says the potential worth improve is a mixture of excessive demand and rising prices. Are tariffs the rationale behind rising prices, and is TSMC contemplating elevating US produced chips to make up for the remainder of its international enterprise? Both approach, if their US chip costs go up, Apple will foot the invoice and probably go it on to customers. And that’s earlier than even contemplating the affect of tariffs for iPhones assembled overseas in international locations like China. Yikes! What’s happening?
Simply yesterday we cautioned readers towards panic-buying an iPhone. Is that this TSMC information a motive to rethink? Every part appears unsure at this level. For those who want or need a new iPhone within the subsequent 12 months or two, maybe you’re higher off leaping on the iPhone 16 or 17. Hopefully, the monetary world will discover its approach again to impartial quickly.