Contingency planning
That concern seems legitimate in the context of unravelling of international relations and a recently-disclosed warning the CIA gave to tech leaders back in 2023. Executives from Apple, AMD, and Qualcomm were all warned that China might attack Taiwan. Such an attack would comprise a huge threat to the entire tech industry. Speaking at the World Economic Forum in January, US Treasury Secretary Scott Bessent warned of an “economic apocalypse” if Tawain were to be blockaded or its capacity destroyed.
Apple derives nearly every chip it uses in its devices from factories in Taiwan. To reduce that risk, it is investing in TSMC factories for this in the US, including at the Fab 21 site in Arizona where small-scale processor production has already begun.
Checks and limits
Setting up new processor production facilities is expensive, takes time, and requires teams of specialized tooling engineers and operators hard to find in the US. In the medium term, you should expect those missing skill sets to be served by robotics, though that will also take time. Apple is investing in AI-augmented manufacturing across its supply chain right now.
Manufacturing processors at the scale Apple requires is not yet possible in the US, so it makes sense for the company to explore other options to meet demand. These early talks appear to show the company is considering the options available to it.