According to internal reports, Apple is considering purchasing manufacturing capacity outside of Asia to diversify its supply chain.
According to an article by Bloombergciting Tim Cook’s remarks during an internal meeting, Apple is reportedly intending to get started buy some potato chips made in the USA and Europe. Apple has long been looking for new ways to diversify its supply chain, and this could be another big step.
Apple tries to protect its supply chain
According to the report of BloombergTim Cook said itApple has “already made the decision to buy a factory in Arizona” that is expected to begin potato chip production in 2024. That means the apple company could start it will use these new US-made chips in its devices within about two years. Apple’s CEO also reportedly added that the brand hopes to “source from Europe” for its expansion plan.
Processors developed internally by Apple, such as the latest M2 chip that powers the new MacBooks and the latest generation of iPad Pro or the chipset of the A-series “Bionic” on iPhone, are mainly produced by TSMC (Taiwan semiconductor manufacturing company). Most of the factories are located in Taiwan, but TSMC has a state-of-the-art facility under construction in Arizona. It seems likely that the latter is the factory where Apple intends to buy the chips, given the collaboration between the two giants.
However, TSMC isn’t the only company building a facility there as Intel is also planning an additional factory in Arizona that is expected to open in 2024. its processors, but it seems unlikely that Apple plans to make them a major part of its its strategy in the future. Intel’s cutting-edge technology is considered not as advanced as TSMC’s and this is surely one of the reasons that led Apple to phase out Intel processors in its MacBooks.
However, regardless of which factories will produce Apple’s chips in the US and Europe, it’s no surprise that the Apple company intends to purchase manufacturing capacity outside of Asia. The company is seeking to reduce its dependence on China and stabilize its supply chain by diversifying internationally.
