Apple's A16 Chips Now Being Manufactured in Arizona TSMC Plant

Apple's A16 chips are now being manufactured on American soil at TSMC's Arizona plant, according to Taiwan-based independent journalist Tim Culpan.

The A16 chip, which debuted in the iPhone 14 Pro two years ago, is reportedly being produced in small but meaningful quantities at TSMC's Fab 21 facility in Arizona. The chips are said to be manufactured using the same 4nm N4P process employed in TSMC's Taiwan factories to ensure consistency in quality and performance.

The move aligns with previous reports suggesting that TSMC's Arizona plant would begin producing advanced chips for Apple as early as 2024. The facility's production is expected to ramp up significantly when the second stage of its first phase is completed, with full-scale manufacturing projected for the first half of 2025.

The choice to manufacture the A16 chip in Arizona is particularly notable, as it suggests Apple has enough belief in the new US facility to entrust it with one of its most advanced mobile processors, rather than opting for a less critical component.

It's unclear which specific Apple devices will use these Arizona-made A16 chips, but they could potentially turn up in an upcoming iPad model or – more likely – the next-generation ‌iPhone‌ SE, given that rumors suggest the ‌iPhone‌ SE 4 will be based on the ‌iPhone‌ 14, in which the A16 processor was first introduced.

The development is a big step in realizing the goals of the $39 billion CHIPS and Science Act, a US federal statute signed into law by President Biden that aims to strengthen domestic semiconductor production. As TSMC continues to refine its processes at the Arizona facility, Cuplan says his sources indicate that A16 manufacturing yields could approach parity with those achieved in Taiwan in the coming months.