Insurance from Taiwan – Apple will use chips that TSMC will produce in the USA

The chip giant


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announced that it will build factories for the production of chips in Arizona, USA at a cost of about 40 billion dollars. The company’s move follows two main factors – the fear of China and the drive of Biden. Most of the company’s chips are manufactured in Taiwan, which has been threatened for years by the invasion of the Chinese. Now , after the election of Xi Jingfeng for a third term, the fear of an invasion only increased and the company decided to take the matter into its own hands. What helped the company to make the move is of course the chip law of the Biden administration, which will make it easier for the company to establish its factories with the help of tax benefits worth billions of dollars.

The main beneficiary (and perhaps also the main pusher) is the chip company’s largest customer –


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. TSMC exclusively manufactures the chips for most of the company’s products, which are considered the best in the world. Apple has been suffering from many problems in the last year, most of which relate to the situation in China and the rigid government there, the last thing it needs is for the company that manufactures the chips it loves so much to be unable to do so due to China’s aggressive moves. The corona situation and the riots in the company’s factories in the last month could, according to the analysts, damage the company’s revenues in the coming quarter by up to 8 billion dollars and Apple cannot afford any additional unexpected damage.

“Now, thanks to the hard work of many people, (the company’s) chips can be proudly manufactured in the USA, this is a particularly significant moment,” Apple CEO Tim Cook said at an event for the new factory. The factory will be able to produce chips with a size of 4 and 3 nanometers, which are used by Apple in its most advanced products and even the processors of


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. “Today is just the beginning,” added Cook.

The first TSMC plant in Phoenix is ​​expected to start making chips as early as 2024, the second plant will not do so until 2026, the Biden administration said. The company’s move is significant conceptually, but not in terms of production. The factories are expected to produce about 600 thousand chip discs per year, in 2020 the company’s total number of discs was about 12 million. It is likely that most of the chips that the factories will produce will of course be intended for Apple and this is probably the biggest reason for this opening. TSMC is of course not the only chip company that has announced the construction of plants within US borders thanks to the law of the Biden administration.


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It has already announced that it will invest a total of about 30 billion dollars in its new plant in Arizona.

TSMC is now worth $413 billion and the stock is trading at around $79 per share, down 33% since the beginning of the year. In the middle of last month, it was reported that the holding company of the famous investor, Warren Buffett, entered into an investment in the amount of about 8 billion dollars and sent the stock up after trading at a price of about 65 dollars per share.

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  • 1.

    Does this mean the price will go up? It is likely (L.T.)

    N.S.

    06/12/2022
    23:15

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