Europe can start producing iPhones, will their prices drop?

TSMC continues to evaluate future expansion plans and is evaluating the construction of the first facility in Europe.

Dresden, Germany Location of the future TSMC plant

Cause and effect is a phenomenon that emerged with Apple this year, especially after what happened with the pandemic. The crisis in China led to the search for a new center, TSMC which is your main chip manufacturer considers the first European factory. Bloomberg previously reported this incident, and now the Financial Times is reaffirming it.

TSMC considers Europe to have a factory in Germany

The chosen location for the Taiwanese manufacturer will be the city of Dresden Although chips for Apple will not be produced in the first place. Considering the crises that Apple is currently experiencing, it is not ignored in the future. The technical advantage that allowed it to consolidate ahead of Apple helping you transcend and go beyond your territory.

TSMC has an issue that may continue to cause problems for you in the long run to Apple. China can complicate and intervene operations that are likely to impede or even invade exports.

Apple and TSMC

Apple will be one of the TSMC customers who will have to pay a price increase in the costs of its components.

With future events and predicting what might happen, TSMC considered diversifying its production and reducing risks. Two plants in Arizona and another in Japan are being considered, the latter in partnership with Sony. Thanks to the Financial Times, it is known that TSMC is negotiating with suppliers to establish itself in Germany. Senior executives of the company will pay a visit from 2023. Construction could begin if the plans come to fruition in 2024. After the facility is established, TSMC may decide to manufacture chips for iPhone from Germany.

What does the main decision depend on?

in context, Arizona factories will focus on manufacturing legacy Apple chips for Cupertino products. It is aimed to produce 4 and 3 nanometer chips in the near and far future. Be warned, these chips won’t be the last generation because the Taiwanese factory will have an advantage in this regard and they will be used for older Apple devices like the iPhone SE and iPhone 11 or 12 that the American factory produces.

In the future, the plant in Germany will have the power to supply chips to the automotive industry.. The processes are larger and more complex, we’re talking about 22 and 28 nanometer chips. If government subsidies are received, everything can change except the decision.

TSMC iPhone chips

TSMC engineer in chip manufacturing process

TSMC plants abroad are subsidized by the local governments where they are installed.. Installation costs are often very high. In the United States alone, the current law stipulates 45 billion for chip manufacturers who set up plants in their own country. The European Union is about to pass the same law.

Plans can best be projected, at the same time they have to consider higher workforce. Engineers with experience overseeing the construction and operation of new facilities are limited. Will they be able to simultaneously control all processes in the United States, Japan, and Germany?

Source: i Padizate

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