Apple’s move to diversify its chip manufacturing beyond Taiwan remains incomplete, as the company’s reliance on TSMC for advanced packaging creates a significant geopolitical and operational vulnerability. While TSMC has invested over 65.000 millones de dólares in Phoenix, Arizona, the lack of local advanced packaging facilities means chips must still travel back to Asia for final processing, maintaining the supply chain risks Apple sought to mitigate.
The Limits of Arizona-Based Chip Production
The TSMC facility in Phoenix was marketed as a landmark for U.S. semiconductor manufacturing, yet industry analysis suggests it remains a “paperweight” in the event of a regional conflict. According to SemiAnalysis, the core issue is the “advanced packaging” phase. After the initial silicon fabrication, chips require this specialized process to enhance connectivity and protect the hardware. Without this capability in the United States, the Arizona plant cannot produce a finished, consumer-ready processor independently.
Did you know? Advanced packaging is one of the most complex stages of manufacturing.
Apple’s Strategic Pivot: Partnering with Intel
To reduce its absolute dependence on TSMC, Apple has re-engaged with Intel as a contract manufacturer. As of mid-2026, reports confirm that Apple is utilizing Intel’s fabrication capacity for entry-level products, including standard iPhone models, MacBook Airs, and Mac minis. This shift represents a return to a relationship that ended in 2020 when Apple transitioned to its proprietary “Apple Silicon.”
Unlike their previous partnership, Intel is not involved in chip design. Its role is strictly as a foundry—the same role TSMC currently occupies. According to recent announcements, the U.S. government has taken a 10% equity stake in Intel to bolster this domestic manufacturing capacity, a move that has already seen significant valuation growth.
Risk Factors: Geopolitics and Seismic Activity
First, the island sits atop a major seismic belt, experiencing thousands of tremors annually. A significant earthquake could halt global production for weeks or months, creating an immediate bottleneck for the entire tech industry.
Second, the financial markets have reacted to these concentrations of risk. Warren Buffett, formerly Apple’s largest individual investor, drastically reduced his stake in both TSMC and Apple between 2023 and 2024. Buffett’s divestment from TSMC, valued at nearly five thousand million dollars, signaled a cooling sentiment toward the risks inherent in the Taiwan-centric model.
Production Timeline for Domestic Chips
- 2025: Expected initial production start date for TSMC’s Arizona facilities.
- 2027-2028: Targeted scale-up for Intel-manufactured Apple chips (A-series and M-series).
- Entry-Level Focus: Initial domestic production will prioritize standard models, while “Pro,” “Max,” and “Ultra” chips remain with TSMC.
Frequently Asked Questions
Why can’t Apple just build the whole chip in the U.S.?
Building a complete semiconductor supply chain requires more than just fabrication plants. Advanced packaging, which is currently concentrated in Taiwan, requires specialized infrastructure and expertise that has not yet been fully established in the U.S.
Will my iPhone perform differently if it’s made by Intel?
No. Apple designs the architecture of its chips. Whether they are manufactured by TSMC or Intel, the performance and efficiency standards are set by Apple, ensuring consistency across its product lineup.
Why did Warren Buffett sell his shares in TSMC?
While the specific reasoning behind individual investment decisions is private, analysts point to the heightened geopolitical tension regarding Taiwan and the inherent risks of relying on a single geographic location for critical technological components.
Pro Tip: Watch the release of the “M7” and “A21” chip generations, as these are slated to be the first major components to utilize Intel’s manufacturing capacity at scale.
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