Apple mobile processors are now made in America by TSMC

Original Article ↗ Hacker News Discussion ↗

What’s actually being manufactured

  • TSMC’s Arizona fab is producing some Apple A16 SoCs on its N4P (4/5nm-class) process.
  • These are for current mid‑tier iPhones (15/15 Plus); cutting‑edge 3nm and future 2nm nodes remain in Taiwan.
  • Volume is unclear; many expect Arizona to handle a fraction of total A16 demand and to be 1‑2 generations behind Taiwan long term.

Apple product and “Apple Intelligence” angle

  • Speculation that a future iPhone SE will use an A18 with more RAM so it can run Apple Intelligence, matching Apple’s stated requirement of A17 Pro/A18/M‑series.
  • Some note Apple is quietly shipping non‑“Apple Intelligence” AI features (e.g., better Photos search) to older devices, suggesting a split between headline AI branding and broader ML improvements.

National security & geopolitics

  • Many see onshoring as primarily a national security move: hedge against a Taiwan crisis, reduce dependence on a single, vulnerable island.
  • Debate on whether this weakens Taiwan’s “silicon shield” and US incentive to defend it, or instead increases overall deterrence by adding redundancy.
  • Some argue China’s strategic interest in Taiwan is more about sea lanes and politics than chips alone.

Industrial policy, CHIPS Act, and subsidies

  • Strong disagreement over whether CHIPS‑style subsidies are needed resilience or corporate welfare.
  • One camp: government support for fabs is justified like other security‑critical sectors; comparative advantage must be tempered by resilience.
  • Other camp: this is protectionism that misallocates capital; they’d rather see broad tax reform or direct transfers than firm‑specific subsidies.

State of US manufacturing

  • Several emphasize US manufacturing output (in value) has grown while jobs and some subsectors (steel, shipbuilding, consumer goods) shrank or moved up the value chain.
  • Others counter that headline numbers are skewed by semiconductors and hedonic adjustments; practical capabilities in “everything else” (machine tools, plastics, discrete components) have eroded.
  • Long back‑and‑forth on comparative advantage vs path‑dependent capabilities and the loss of mid‑skill, locally trained manufacturing talent.

TSMC, ASML, and knowledge transfer

  • Clarification that ASML supplies EUV tools, while TSMC’s value is process integration, yield tuning, and PDKs—ASML alone can’t “run a fab.”
  • Some doubt there is formal tech transfer to US firms; Arizona remains a TSMC‑run facility, with key know‑how still centered in Taiwan.
  • Work‑culture differences (24/7 responsiveness in Taiwan vs US expectations) and Arizona labor/permits are cited as real but apparently manageable challenges.

Costs, jobs, and consumers

  • Widespread assumption that US‑built chips are ~50% more expensive, partly offset by subsidies; precise cost delta remains unclear.
  • Concern that higher costs may push phone prices up, while others note Apple’s margins give it room to absorb some increase.
  • Many stress that fabs alone don’t rebuild the broader hardware ecosystem (passives, connectors, PCB assembly); the US still relies heavily on Asian supply chains for “the galaxy of cheap parts” around a top‑end die.