The US is geared up for the production of semiconductors. President Joe Biden signed a $280 billion bipartisan bill to boost domestic high-tech manufacturing as part of his administration’s push to boost US competitiveness over China.
Taiwan Semiconductor Manufacturing Company Limited has already announced its plans to set up a single factory in Arizona to open in 2024. Now, as reported Apple and TSMC are in talks to bring 3nm chip production to the US. As in known lower process nodes drive more transistors on the SoC, more power and more operations are the end result. As reported by TSMC, it is planning to set up a second chip factory in Arizona because of strong customer demand.
As Samsung’s 4 nm process node causes the chip to heat, the company decided to let it go and the demand shifted to TSMC. Next year, TSMC will start the production of the 3nm A 17 Bionic for the 15 Pro and iPhone 15 nmUltra. Apple and TSMC have been working together for a long time and 25% of TSMC’s revenue comes from Apple.
Though Apple wants to shift its chip production from China, given the nature of the project it is not going to happen in a jiffy. Some analysts are of the opinion that it would approximately take at least 8 years to transfer iPhone production from China to India.
The US restrictions have forced China to move in the self-reliant mode. On the other side of the semiconductor geo-strategic story, the Phoenix plant is waiting for the 5nm chips to be withdrawn from the market. This would be the right time to move 3nm production to the US.
Apple is planning to buy chips made in the US and Europe by 2024 in a bid to reduce dependency on Asia, Bloomberg reported citing CEO Tim Cook's comments. Apple has already made a decision to be buying out of a plant in Arizona, Cook reportedly said. He added that Apple could expand its supply of chips from plants in Europe.
The famed journey of the chip to the US will not be a fairy.
The US is geared up for the production of semiconductors. President Joe Biden signed a $280 billion bipartisan bill to boost domestic high-tech manufacturing as part of his administration’s push to boost US competitiveness over China.
Taiwan Semiconductor Manufacturing Company Limited has already announced its plans to set up a single factory in Arizona to open in 2024. Now, as reported Apple and TSMC are in talks to bring 3nm chip production to the US. As in known lower process nodes drive more transistors on the SoC, more power and more operations are the end result. As reported by TSMC, it is planning to set up a second chip factory in Arizona because of strong customer demand.
As Samsung’s 4 nm process node causes the chip to heat, the company decided to let it go and the demand shifted to TSMC. Next year, TSMC will start the production of the 3nm A 17 Bionic for the 15 Pro and iPhone 15 nmUltra. Apple and TSMC have been working together for a long time and 25% of TSMC’s revenue comes from Apple.
Though Apple wants to shift its chip production from China, given the nature of the project it is not going to happen in a jiffy. Some analysts are of the opinion that it would approximately take at least 8 years to transfer iPhone production from China to India.
The US restrictions have forced China to move in the self-reliant mode. On the other side of the semiconductor geo-strategic story, the Phoenix plant is waiting for the 5nm chips to be withdrawn from the market. This would be the right time to move 3nm production to the US.
Apple is planning to buy chips made in the US and Europe by 2024 in a bid to reduce dependency on Asia, Bloomberg reported citing CEO Tim Cook's comments. Apple has already made a decision to be buying out of a plant in Arizona, Cook reportedly said. He added that Apple could expand its supply of chips from plants in Europe.
The famed journey of the chip to the US will not be a fairy
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Global chip shortage would impact production of Apple’s new iPhone 13
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We have been seeing the global shortage of semiconductors, the semiconductor industry found itself in an unaccustomed spotlight. Suddenly everyone was talking about the tiny chips that enable many different car functions, from interior lighting to seat control to blind-spot detection. When some high-tech and consumer-electronics companies began to experience chip shortages or voiced concerns about supply chains, the attention intensified. It’s now clear to all that we are living in a semiconductor world. A report says, there is a huge demand-supply gap, the global smartphone applications processor market grew 23% to $30.8 billion in 2021. But the current chip shortage is unlikely to be resolved in the near future, partly because of the complexities of the semiconductor production process. Typical lead times can exceed four months for products that are already well established in a manufacturing line. Increasing capacity by moving a product to another manufacturing site usually adds another six months (even in existing plants). Switching to a different manufacturer typically adds another year or more because the chip’s design requires alterations to match the specific manufacturing processes of the new partner. And some chips can contain manufacturer-specific intellectual property that may require alterations or licensing.
Sales are jumping as computer chips spread to every part of consumers’ lives, becoming essential components of products from cars to smart devices to clothing. Surging demand during the pandemic also resulted in a shortage. There has been rapid growth of the technology sector, and increased cloud usage, as well as ongoing consolidation in many sub-segments. One consequence is that the semiconductor industry’s profitability has improved significantly relative to other industries, and this trend is expected to continue. When we saw the statistics, Qualcomm tops the global smartphone apps chip market with double-digit growth. Qualcomm maintai
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