Report: Apple’s US chip manufacturing grows by adding Apple Watch S9 SiP

A new US administration is about to take office that will encourage companies to build in America rather than abroad. And Apple appears to be well prepared for these changes, as the company as reported just expanded its chip production in the US.

TSMC Arizona now produces two chips for Apple

Tim Culpan writes at Culpium:

TSMC Arizona acquired a second Apple product. According to my sources, in addition to the A16 processor for iPhone, which I shared with you in September, the factory is now producing SiPs (systems in package) for the Apple Watch. This product is supposed to be the S9 SiP (to be honest, it’s a little unclear to me, but I’m 99% sure it’s the S9). Let’s remember that TSMC Arizona makes the N4 (part of the N5 family process nodes) and the S9 is made in Taiwan at the N4 and is derived from the A16, so that would make sense.

Adding one Apple Watch SiP to US production may not seem like a big deal. But as Culpan points out, this is only the second chip Apple has produced at TSMC Arizona.

The move from one chip to two in some ways represents a doubling of what the company was doing before. And Apple will likely tout the move in an upcoming press release, perhaps after President-elect Trump takes office later this month.

Apple’s Expansion of US Investments Likely Due to Tariff Evasion

The Trump administration is expected to impose strict tariffs on products imported into the US from abroad, but Apple hopes be substantially relieved of any such financial burden.

Rationale? Tariffs on US company Apple would harm its ability to compete with foreign tech giants such as Korea’s Samsung.

That argument largely worked in Apple’s favor during Trump’s first term, but the company also took steps to invest more in US projects than before.

Today’s report shows Apple is following a similar pattern ahead of Trump’s inauguration, and we should expect to see more announcements about US initiatives in the years ahead.

What do you think about Apple’s expansion of chip production in the US? Do you expect more stories like this to appear? Let us know in the comments.

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