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.

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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.

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Top Rated Comments

HiVolt Avatar
13 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
13 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
13 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
13 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
13 months ago
Apple doesn't need tax breaks. They can fund it themselves without corporate welfare handouts.
Score: 20 Votes (Like | Disagree)
Gooberton Avatar
13 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)

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