Originally seen as a win-win for TSMC and Apple, the facility is reportedly behind schedule and over budget, with production delayed until 2025. There are concerns that American-made chips may be more expensive than Taiwanese ones.
A recent report shows that Apple chips may be manufactured in the US, but final assembly will take place in Taiwan, making the Arizona factory virtually useless in terms of reducing dependence on Taiwan for chip production. The complex packaging of the chips, a critical step, can only be completed in Taiwan, where TSMC has a significant advantage.
Dylan Patel, principal analyst at SemiAnalytics, said TSMC’s Arizona facility would be a “paperweight” in geopolitical tensions or conflicts with China over Taiwan due to dependence on Taiwan for chip packaging.
Apple and TSMC declined to comment on this report.
Source: Ferra
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