Tech giant Apple is to buy semiconductor chips from a factory in the US state of Arizona as part of efforts to improve supply security. This can be read on the supply management site.

“We have already decided to buy chips from the Arizona factory. The factory will start in 2024, so we have two more years ahead of us. I’m sure we will also buy from Europe when the plans for that are clear. You will see significant investment in both the US and Europe to move silicon production. I think,” said Apple CEO Tim Cook.

Redesigning supply chains

Apple’s manufacturing move comes as the company looks to reshape its supply chains outside China, which has been hit by iPhone production shutdowns. At the same time, the US government is providing US$52 billion to increase offshore semiconductor production to reduce dependence on Chinese and Taiwanese production. More US funding could help TSMC, the world’s largest chipmaker from Taiwan. The company wants to build a $12 billion chip factory in Arizona. Apple currently sources its chips from TSMC in Taiwan, but is looking to shift some of its iPhone 14 production to India and Vietnam.

Source: Supply Management