Apple A16 Chip Now in Production at TSMC's U.S. Plant

TSMC has reportedly started producing Apple's iPhone chips at its Arizona facility, marking the first U.S.-made A16 chips. The Arizona plant, which has been in development for years, traces its origins to a 2020 project. Now, four years later, it has reportedly entered operation and begun manufacturing chips for Apple.

According to sources, the first phase of TSMC's Fab 21 in Arizona is producing the A16 SoC used in the iPhone 14 Pro in "small but increasing" quantities. While this initial phase focuses on testing, production is expected to ramp up significantly in the coming months.

Once the second phase of the facility is fully completed, output is expected to increase substantially. If all goes as planned, the Arizona plant aims to reach full production capacity by the first half of 2025.

The chips being produced in Arizona use TSMC's N4P process, which is an enhanced version of the 5-nanometer technology used in Taiwan to produce the A16, rather than a full 4-nanometer process.

A TSMC spokesperson confirmed, "The Arizona project is progressing according to schedule and moving forward smoothly."

Reports suggest that production yields in Arizona are slightly behind those of TSMC's Taiwan operations, but output is expected to equalize in the coming months.

This production milestone is significant for U.S. chip manufacturing, partly due to the substantial financial support TSMC has received from the U.S. government. In addition to its original $12 billion investment in 2020, TSMC has secured $6.6 billion in subsidies from the U.S. Department of Commerce as part of the CHIPS for America fund.

TSMC has also increased its investment plans, with plans to build three additional plants in Arizona. The U.S. Department of Commerce estimates that this initiative will create 6,000 direct manufacturing jobs and around 20,000 construction jobs.