Apple CEO Tim Cook holds the new iPhone 14 during an Apple event at its headquarters in Cupertino, California on September 7, 2022.

carlos barria | Reuters

Apple will buy some of its chips from a factory in Arizona, Apple CEO Tim Cook said last month during an internal company meeting in Germany, according to Bloomberg News.

Apple currently sources all of its processors from factories in Taiwan. It designs its own chips, and Taiwan Semiconductor Manufacturing Company makes the A-series and M-series processors that power iPhones and Mac computers.

If Apple were to buy US-made processors, it would represent a significant diversification of Apple’s supply chain outside of Taiwan.

“We have already made the decision to buy a plant in Arizona, and this plant in Arizona is starting in 24, so we have about two years ahead of us for that one, maybe a little less,” Cook said, according to Bloomberg. .

TSMC previously announced plans to open a single factory in Arizona in 2024, focused on chips using the latest manufacturing technologies. TSMC said earlier this month it was planning a second chip factory in Arizona due to “high customer demand”.

Intel also operates chip foundries in Arizona and has said it wants to win Apple’s business for its new foundry division that manufactures other companies’ chips. It also plans to build additional factories in Ohio.

US politicians fear that companies like Apple sourcing advanced and expensive parts from Taiwan could pose a risk and create chaos if China ever invades the island nation. Cook reportedly told the meeting that 60% of the world’s processors come from Taiwan.

Apple does the vast majority of its final assembly for iPhones and other devices on the Chinese mainland, but it sources parts from many different countries, including the United States and Taiwan. Cook reportedly said Apple was also considering buying chips from factories in Europe.

Congress passed the CHIPS Act earlier this year, which includes about $50 billion in financial incentives for semiconductor companies to build factories on US soil.

An Apple representative declined to comment.

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