TSMC’s recent $100 billion promise to boost its U.S. operations grabbed attention, but it left out key details—like whether this cash is really new or just old promises repackaged. Even more surprising, some experts think this move could actually slow down efforts to make Apple chips in America. Here’s why.
Where Things Started
Back in 2022, Apple shared exciting news: it wanted chips stamped “Made in the USA.” This tied into the U.S. CHIPS Act, a big push to bring tech jobs home. TSMC stepped up, planning factories in Arizona. Some of those chips were meant for older Apple gadgets.
But the road’s been bumpy. The first factory was supposed to start cranking out chips last year, but that got delayed to 2024. People also wondered if raw chips made in the U.S. would still need to zip back to Taiwan for finishing touches—something called “packaging.” Plus, there were grumbles about jobs. TSMC brought in many workers from Taiwan, sparking claims it wasn’t fully supporting American workers.
What’s Up with the $100 Billion?
The Trump team hyped up this $100 billion plan before TSMC even confirmed it, making it sound fresh. But since Arizona factories were always part of the vision, it’s hard to tell if this is extra money or just the same budget with a new label.
One fresh twist? TSMC now says it’ll build U.S. packaging plants. Before, they planned to hand that job to another company, Amkor. This might just mean shifting work around in the U.S., not adding much new.
A Setback for Apple Chips?
Here’s the catch: Apple needs cutting-edge chips, and TSMC’s best tech stays in Taiwan. The U.S. plants were already set to make older-style chips, lagging behind Taiwan’s top factories. Now, analyst Ming-Chi Kuo says this new deal scraps one of the more advanced U.S. plants. Instead, TSMC’s adding a packaging site and a research hub.
That could mean fewer chips for even Apple’s older devices. Kuo also warns the $100 billion isn’t locked in—it’s “flexible,” so TSMC might adjust based on how things go. In short, this big announcement might sound great, but it could leave U.S.-made Apple chips stuck in the past.