Apple (NASDAQ: AAPL) to Source Chips from the US and Europe

Apple is looking to source chips from the US and Europe to lessen its reliance on the traditional Asia-based supply chain.

FREMONT, CA: The assertion was made by Mark Gurman of Bloomberg, who cites statements made by Tim Cook during an internal meeting in Germany. Cook is cited as saying they had already decided to buy out a factory in Arizona. This plant in Arizona opens up in 2024, so they've got about two years ahead of us on that one, maybe a little less.

Taiwan Semiconductor Manufacturing Co.(TPE: 2330) is the sole supplier of chips to Apple, and the name of the business gives away its location. Around 60 per cent of the world's semiconductor manufacture, according to Cook, is produced on the tiny island of Taiwan.

It is well known that TSMC will establish a production facility in Arizona, US, in 2024. This facility is the one that Cook is hinting at here. Apple may be able to rely on a second plant that TSMC is reportedly establishing on US soil as a second supplier of chips in the country. TSMC has said that its first US factory will be able to make chips using a 5-nanometer production process, which is less than Apple's hopes for 3nm devices.

Cook's reference to Apple's European production aspirations and the rumour that TSMC is in talks to open a chip plant in Germany seem to be related. Apple has shifted some of its manufacturing to India to diversify its supply chain.