Apple to buy more than 100 million chips from TSMC’s Arizona fab by year’s end
Apple Inc. plans to buy more than 100 million computer chips from Taiwan Semiconductor Manufacturing Co.’s fab site in Arizona by the end of the year, the California-based company said Tuesday.
Apple’s chip purchase from TSMC is part of the California-based tech giant’s $600 billion commitment announced last year to strengthen U.S. manufacturing.
“We’re buying as much of the output of this fab as we can,” David Tom, Apple’s global head of procurement, told the Wall Street Journal.
Apple declined to comment further on its chip deal with TSMC or on the Arizona operations.
Apple is one of TSMC’s Arizona’s largest customers and its demand is helping fuel the company’s massive fab site expansion in north Phoenix, where it began high volume production of chips last year. Apple committed to sourcing chips from the Arizona TSMC factory back in 2022.
In addition to Apple’s chip investment, the company on Tuesday announced an expansion of its factory operations in Houston, bringing the future production of Mac mini to the U.S. for the first time. Apple is also expanding advanced AI server manufacturing at the factory and beginning training at its new, 20,000-square-foot Advanced Manufacturing Center in Houston later this year, according to a company announcement.
“Apple is deeply committed to the future of American manufacturing, and we’re proud to significantly expand our footprint in Houston with the production of Mac mini starting later this year,” Tim Cook, Apple’s CEO, said in a statement. “We began shipping advanced AI servers from Houston ahead of schedule, and we’re excited to accelerate that work even further.”
Apple began producing advanced AI servers in Houston in 2025 for the first time, and production is already ahead of schedule. Servers assembled in Houston — including logic boards produced onsite — are used in Apple data centers around the country, according to the company.
Apple hits key milestones for $600B commitment
Since announcing its $600 billion commitment to the U.S. last year, Apple and its American Manufacturing Program partners have already reached several milestones, according to the company.
Apple exceeded its target and sourced more than 20 billion U.S.-made chips from 24 factories across 12 states from partners that include TSMC, Broadcom and Texas Instruments, the company said.
GlobalWafers started production at its new $4 billion silicon wafer facility in Sherman, Texas. Apple’s chip manufacturing partners — including TSMC and Texas Instruments — will use wafers produced in Sherman.
Corning’s facility in Harrodsburg, Kentucky is now dedicated to cover glass for iPhone and Apple Watch shipped globally, and every new iPhone and Apple Watch will have cover glass made in the state by the end of the year.
Apple also opened its manufacturing academy in Detroit and the facility is already supporting more than 130 small- and medium-sized American manufacturers with hands-on training in AI, automation, and smart manufacturing.
Supported by an unspecified investment from Apple, Amkor broke ground in October on its new $7 billion semiconductor advanced packaging and test facility in Peoria, where Apple will be the first and largest customer.
The company is building its 2.3 million-square-foot manufacturing campus in two phases, which will offer more than 750,000 square feet of cleanroom space and generate 3,000 new jobs.
The first phase is slated for completion in mid-2027 with production starting in early 2028, the Business Journal previously reported.
Amkor is projecting capital expenditures between $2.5 billion and $3 billionin 2026, up from $905 million it spent last year. Some 65% to 70% of that amount will go toward its Arizona campus, with the remainder to support HDFO test and other advanced packaging capacity, Megan Faust, Amkor’s chief financial officer, said during the company’s earnings call earlier this month.
TSMC, meanwhile, is in the process of building out its Arizona fab site, having completed its first fab that started high-volume production of N4 technology chips in late 2024.
The company also completed its second fab and plans to install chipmaking equipment in the facility during the third quarter, paving the way to begin 3-nanometer chip production by 2027, which is a year earlier than expected, the Business Journal previously reported.
TSMC broke ground on its third fab in mid-2025, paving the way to begin 3-nanometer chip production by 2027, which is a year earlier than expected, the Business Journal previously reported.
Under the company’s current $165 billion investment, TSMC would build out a total of six chip fabs, two chip packaging facilities and an R&D center in a construction timeline that already extends beyond 2030.
TSMC paid $197 million at a public Arizona State Land Department auction for 900 acres of land adjacent to its north Phoenix fab site for future expansion, which the Wall Street Journal reported may be used for the planned new facilities.