Last month, Tim Cook shared privately with a group in Germany that Apple would begin sourcing chips made in the United States. Today, Cook publicly confirmed that Apple would be using chips made in the U.S. during an event held in Arizona. While things are still in the early stages, the chips will be built in a new factory owned and operated by Taiwan Semiconductor Manufacturing Company (TSMC).

During the event, Tim Cook stated:

Today is only the beginning. Today we’re combining TSMC’s expertise with the unrivaled ingenuity of American workers. We are investing in a stronger brighter future, we are planting our seed in the Arizona desert and at Apple, we are proud to help nurture its growth.

TSMC has been Apple's manufacturing partner for quite some time. According to CNBC, TSMC will have two facilities in Arizona, and the company will be able to manufacture 3-nanometer and 4-nanometer chips. Currently, Apple's latest A-series found in the iPhone and iPad and M-series chips that are featured in the MacBook Pro are 5-nanometer.

Over the past year, Apple has done quite a bit to shift its strategy. The firm has moved some production of its iPhones to India and has also started experimenting with Apple Watch and MacBook production in Vietnam. Of course, all of this isn't just out of goodwill, the U.S. Department of Commerce is offering $50 billion in grants to companies that take part in domestic semiconductor research or manufacturing.

In the case of Apple, the government will subsidize some of the costs of the Arizona facilities. TSMC shared that it will spend $40 billion on its two factories, one of which will be ready in 2024, and the second factory will be ready in 2026. Despite this huge investment, this will only be a drop in the bucket when it comes to the company's manufacturing power, but it's at least a start.

Source: CNBC