Comments

You must log in or register to comment.

Hrmbee OP t1_iwiq132 wrote

>"We've already made a decision to be buying out of a plant in Arizona, and this plant in Arizona starts up in '24, so we've got about two years ahead of us on that one, maybe a little less," Cook reportedly said at the meeting, according to Bloomberg. "In Europe, I'm sure that we will also source from Europe as those plans become more apparent." > >Also present at the meeting were Apple Services chief Eddy Cue and Head of People Deirdre O'Brien. > >Construction for the TSMC chip fabrication plant in Arizona began in June 2021. The company had initially projected to fire up production in September 2022, but the timeline has been pushed back by about six months. > >The TSMC plant is expected to go on-line in March 2023. TSMC expects it will reach its production start in early 2024. > >The labor pool in Arizona is also creating a challenge for TSMC. Intel already employs 12,000 people and seeks 3,000 more for its expanded facilities. TSMC will have to compete in an already low-unemployment region when seeking talent for its new plant.

It will be interesting to see how this works out for US and European fabs in the long run. Are companies going to be setting up US or EU-based assembly plants as well, or as the article mentions in the end will the chips still need to be shipped to China or India or wherever else the devices will be made in the future.

32

skolioban t1_iwj37y5 wrote

Whichever makes them the most money.

7

capitalism93 t1_iwj8j7o wrote

Companies also have to take into account where talented workers are. Europe is becoming as irrelevant as ever in chip fabrication (exception: ASML).

4

RejZoR t1_iwkhgox wrote

That's a pretty big one since TSMC wouldn't even exist without ASML. They make the machines that fab the chips.

2

electriceric t1_iwl74vo wrote

They make a couple of machines in Litho and metrology. Super important machines (especially EUV) but theres a lot of other companies making other machines thats apart of the whole process.

2

electriceric t1_iwl6ybd wrote

Except for you know the 80 Billion Euros Intel is spending for a new mega fab in Germany, R&D in France, increasing production in Ireland and new investments in Poland, Italy, and Spain.

Source

2

DevAnalyzeOperate t1_iwjtcr6 wrote

US-based fabs had more support than this in the past and still faltered in the face of competition. It’s only because of American dominance of the greater supply chain that America is able to put the screws to China like this at all.

5

Rugged_Refined t1_iwk2ers wrote

I must have missed where he mentioned TSMC. Intel also fabs out of Arizona and also has Europe fabs developments in Germany (where this meeting takes place) as well as Italy.

1

God-of-Memes2020 t1_iwitfnf wrote

This is sus timing with Buffet. Wonder if they’re gonna get grilled for j wider* insider trading again.

*Edit: how the fuck did no one criticize this yet?

16

Kyaw_Gyee t1_iwtk020 wrote

Apple has been buying wafers from tsmc for years. The only news here is that the wafers will be from the Tsmc factory in Arizona. Why would anyone criticise that? Is apple and tsmc still supposed to go through complex logistics to deliver wafers from Taiwan?

1

Ghost_in_a_flower t1_iwiy0cj wrote

They're most likely have to shell out a hell of a lot more money to get chips from Arizona.

1

TheBeardofGilgamesh t1_iwjndbq wrote

Labor is insignificant when it comes to the costs associated with chip production.

10

priznut t1_iwj0vw0 wrote

I’m sure Apple is working that out, they’ll have a cash advantage compared to most companies.

They are sitting im 80 billion plus. And have one of the highest % cash reserves.

I’d be more concerned if they cannot innovate and eat into global market shares.

3

DevAnalyzeOperate t1_iwjtwrv wrote

It really doesn’t cost that much to have chips assembled in America, either to the business or a consumer. Semiconductors are just a cutthroat business and these CEOs would murder their grandmother for a quarter. American wages wouldn’t cause your Macbook to be more than a few bucks more expensive.

A lot of problems with America is that it’s just not very good lol. Arizona is a great location for a plant that relies on water, America can’t get shit built in general, and its local talent pool has been gutted since software was paying more than double the salary semiconductors we’re paying for years.

3

silvermember t1_iwk7t8i wrote

Chip manufacturing requires less hands on and more technical skills. The US is nit lacking in that.

2

WolfResponsible8483 t1_iwjkjzz wrote

Chinese chip makers probably shutting down due to chip ban preventing them from get parts for their chip manufacturing equipment.

1

buyongmafanle t1_iwjwwoi wrote

I have no idea why they picked Arizona instead of a place near the Great Lakes.

−2

electriceric t1_iwl7g41 wrote

Cheap land, tax benefits, and established work force to poach from (Intel Chandler Fabs)

5

MrLanesLament t1_iwmtfya wrote

Ohio here. Just the status quo making sure we continue to get absolutely nothing.

−1

melovePHATbootyy t1_iwkd6fr wrote

I welcome the asian workforce they are very nice and respectful but PLEASE FOR THE LOVE OF GOD QUIT THROWING AWAY YOUR FISH LUNCH INSIDE THE OFFICE SPACE. SMELLS LIKE A FAT HOOKER SPREAD OPEN HER LEGS IN FRONT OF MY FACE.

−14