Apple Lobbies for Tax Breaks for Manufacturing More Chips in United States

Apple is seeking tax breaks from the U.S. government for domestic chip production, which suggests Apple may be aiming to move more iPhone manufacturing to the United States.

applesilicon
According to Bloomberg, second and third-quarter lobbying disclosure reports indicate that Apple lobbied officials from the Treasury Department, Congress, and the White House on tax issues that included "tax credits for domestic semiconductor production."

Apple designs many of its own chips, including the A-series chips used in iPhones and iPads and the Apple Silicon chips that will be used in future Macs. Development of chips is done in-house in Cupertino, but production is outsourced to Taiwan Semiconductor Manufacturing Company (TSMC).

Apple's lobbying efforts indicate that it perhaps wants to move production to the U.S., where it would not have to deal with tariffs and trade tensions between the United States and China.

Apple's recent lobbying coincides with a push by the company and its partners to move some production away from China and even back to the U.S. in a few cases. There's also a broader effort by the U.S. semiconductor industry to get government support for increased domestic production.

Apple veteran and director of federal government affairs Tim Powderly is leading Apple's lobbying efforts, according to Bloomberg. Apple's prior policy exec, Cynthia Hogan, left the company in May after being selected as one of the members of Joe Biden's vice presidential selection committee.

Most Apple products are made overseas, but the 2013 Mac Pro was manufactured in Austin, Texas. The same Texas plant is also responsible for the final assembly of the new ‌Mac Pro‌ models, and Apple decided to use the plant after being provided with tariff exemptions.

Apple chip partner TSMC in May announced plans to open an advanced chip factory in Arizona, and once that plant is open, it is expected to produce 5-nanometer chips. Apple's most recent A-series devices use A14 chips built on a 5-nanometer process.

Apple in 2018 committed to spending $350 billion to boost the U.S. economy over the course of five years, and has contributed funds to U.S. companies that make ‌iPhone‌ components, including Corning and Finisar.

Note: Due to the political or social nature of the discussion regarding this topic, the discussion thread is located in our Political News forum. All forum members and site visitors are welcome to read and follow the thread, but posting is limited to forum members with at least 100 posts.

Top Rated Comments

HiVolt Avatar
9 months ago

Tariffs are evil. Oust the moron in charge of the country, and make the factories where it makes sense, not where the "free market" fascist in charge prefers.
The "free market" has gotten the US in the state its in, and empowered countries like China to where they are.

The "moron" was trying to put america first. you know, you people need the damn jobs. the free market was giving them to China.
Score: 33 Votes (Like | Disagree)
vipergts2207 Avatar
9 months ago

Exactly what leftists don't understand, they are up in arms when big corporations get tax breaks, then wonder why everyone leaves to China
Because too often the big corporation doesn’t fulfill their end of the bargain that got them those tax breaks and/or send jobs outside our borders anyway.

https://www.propublica.org/article/ohio-just-ordered-gm-to-repay-28-million-in-tax-breaks-for-closing-the-lordstown-auto-plant

https://www.stltoday.com/business/local/carrier-gets-tax-breaks-but-its-still-sending-1-300-jobs-to-mexico/article_d2f958e5-1eaf-5401-93b1-c6b0990acab2.html
Score: 24 Votes (Like | Disagree)
GeoStructural Avatar
9 months ago
I support this. It is already quite difficult to produce hardware in the US. This kind of incentives can even trigger complete production chains in side/related components.

Edit: For people saying this is a form of "ransom" or that it will require others to make up for the "shortfall" that is quite not the case. This taxation doesn't even exist right now because such industry is not here. So whatever small tax is collected it is better than zero. Also this brings employment, depending on the jurisdiction you still get to tax individuals, store revenues are likely to increase, house market gets reactivated, many services will be benefited.

Honestly I do not see how this could be wrong, as long as you can keep schools and safety afloat in the community bringing industry/employment even under tax break is a GOOD thing.
Score: 21 Votes (Like | Disagree)
magicschoolbus Avatar
9 months ago
USA should be manufacturing chips purely based on a national security standpoint.

i hope this gets done.
Score: 20 Votes (Like | Disagree)
Stella Avatar
9 months ago
Apple doesn't need tax breaks. They can fund it themselves without corporate welfare handouts.
Score: 20 Votes (Like | Disagree)
Gooberton Avatar
9 months ago
Exactly what leftists don't understand, they are up in arms when big corporations get tax breaks, then wonder why everyone leaves to China
Score: 17 Votes (Like | Disagree)

Top Stories

16 inch macbook pro m2 render

When Can We Expect the Redesigned MacBook Pros Now?

Wednesday June 16, 2021 7:11 am PDT by
With no sign of redesigned MacBook Pro models at this year's WWDC, when can customers expect the much-anticipated new models to launch? A number of reports, including investor notes from Morgan Stanley and Wedbush analysts, claimed that new MacBook Pro models would be coming during this year's WWDC. This did not happen, much to the disappointment of MacBook Pro fans, who have been...
2021 back t0 school

Apple Launches 2021 Back to School Promotion: Free AirPods With Eligible Mac or iPad Purchase

Thursday June 17, 2021 4:56 am PDT by
Apple today launched its seasonal back-to-school sale for the upcoming school year in the United States and Canada, offering students free AirPods alongside purchases of select Macs and iPad models. Similar to last year's promotion, this year's offer includes free AirPods alongside the purchase of a MacBook Air, MacBook Pro, the new 24-inch iMac, the Mac Pro, Mac mini, and the new M1-powered ...
maxresdefault

Apple CEO Tim Cook: Sideloading Apps Would 'Destroy the Security' of the iPhone

Wednesday June 16, 2021 10:49 am PDT by
Apple CEO Tim Cook this morning participated in a virtual interview at the VivaTech conference, which is described as Europe's biggest startup and tech event. Cook was interviewed by Guillaume Lacroix, CEO and founder of Brut, a media company that creates short-form video content. Much of the discussion centered on privacy, as it often does in interviews that Cook participates in. He...
YouTube Picture in Picture Feature

YouTube Says iOS Picture-in-Picture Coming to All US Users

Friday June 18, 2021 9:41 am PDT by
After a long wait, YouTube for iOS is officially gaining picture-in-picture support, allowing all users, non-premium and premium subscribers, to close the YouTube app and continue watching their video in a small pop-up window. In a statement to MacRumors, YouTube says that picture-in-picture is currently rolling out to all premium subscribers on iOS and that a larger rollout to all US iOS...
applecare lower prices

Apple Lowers Prices of AppleCare+ Plans for M1 MacBook Air and MacBook Pro

Thursday June 17, 2021 7:33 am PDT by
Apple today lowered the prices of AppleCare+ plans for MacBook Air and 13-inch MacBook Pro models equipped with the M1 chip. Coverage offered by the plans, as well as accidental damage fees, appear to remain unchanged. In the United States, AppleCare+ for the MacBook Air now costs $199, down from $249. The new price applies to both M1 and Intel-based MacBook Air models, although Apple no...
m1 v intel thumb

Intel Processor Market Share May Fall to New Low Next Year Due to Apple Silicon

Friday June 18, 2021 2:06 am PDT by
Intel may see its market share fall to a new low next year, in large part thanks to Apple's decision to move away from using Intel processors in its Mac computers and instead use Apple silicon. Apple announced last year that it would embark on a two-year-long journey to transition all of its Mac computers, both desktops, and laptops, to use its own in-house processors. Apple is expected to...
apple watch edition series 5 ceramic black prototype

Apple Planned Black Ceramic Apple Watch Edition Series 5

Wednesday June 16, 2021 5:45 am PDT by
Apple considered offering a black version of the ceramic Apple Watch Edition Series 5, according to newly-shared images of the prototype casing. The images, shared on Twitter by the prototype collector and leaker known as "Mr. White," show a prototype black ceramic Apple Watch casing, alongside the white ceramic version. The ceramic Apple Watch Edition Series 5 was never available in a...
maxresdefault

Demo: Check Out AirPlay 2 on a Mac in macOS Monterey

Tuesday June 15, 2021 11:57 am PDT by
With macOS Monterey, Apple has introduced expanded AirPlay 2 support, so you can AirPlay content from an iPhone, iPad, or even another Mac to your main Mac. We thought we'd do a quick demo of this handy new feature in our latest YouTube video. Subscribe to the MacRumors YouTube channel for more videos. With AirPlay to Mac, you can extend or mirror an Apple device's display to a Mac, and since ...
app store blue banner

U.S. Antitrust Legislation Would Require Users to Be Able to Delete All Pre-Installed Apple Apps [Updated]

Wednesday June 16, 2021 11:26 am PDT by
Update: Bloomberg inaccurately interpreted the original comments and has since drastically changed the wording of its article. The original Bloomberg piece said that Apple would be prohibited from pre-installing its own apps on iPhones. The updated Bloomberg article has been rewritten to clarify that the antitrust legislation prohibits Apple from preventing users from removing Apple-created...
3nm apple silicon feature

Apple Supplier TSMC Readies 3nm Chip Production for Second Half of 2022

Friday June 18, 2021 6:59 am PDT by
Apple supplier TSMC is preparing to produce 3nm chips in the second half of 2022, and in the coming months, the supplier will begin production of 4nm chips, according to a new report from DigiTimes. Apple had previously booked the initial capacity of TSMC's 4nm chip production for future Macs and more recently ordered TSMC to begin production of the A15 chip for the upcoming iPhone 13,...