TSMC’s Arizona plant has apparently started making another Apple processor. According to tech columnist Tim Culpan, after the initial production of the iPhone’s A16 Bionic chip in the US last year, the manufacturer is now making Apple Watch’s S9 chips, which are currently available on the Apple Watch Series 9 and Apple Watch Ultra 2.
While Culpan says he is “99% sure it’s the S9,” he recalls that TSMC’s Arizona plant is manufacturing N4 process nodes, which means it’s producing processors with 4nm technology. In addition, the S9 SiP is a derivation of the A16 chip, so his report makes sense.
TSMC is currently in Phase 1A, which means it’s making around 10K wafers per month. Once phase 1B is completed, production will rise to 24K/month. Technically, the company expects to achieve that goal in the first quarter of this year.
Even though this production isn’t enough to handle the demand for the iPhone 15 and Apple Watch, this is a long-term partnership with the US government and also a great PR move by Apple (more than diversifying its supply chain).
In addition, this production could hint at future new products. For example, with a new HomePod mini expected to launch soon, Apple could use these chips for its smart speakers, which don’t have a significant sales volume. For the A16 Bionic chip, Apple still manufactures the iPhone 15, and it will continue to do so for at least another year.
In the near future, TSMC plans to bring the 3nm technology to its US factory. That said, Apple would be able to produce several other chips, including the A17 Pro, the A18 family, the M3, the M4, and eventually the M5 chip, which is also expected to use the 3nm technology process.
TSMC founder Chang has confirmed that TSMC will bring the latest 3-nm chip production to the U.S. but also said that manufacturing in the U.S. will be 50% more expensive than in Taiwan. TSMC’s current production base for 3-nm chips is in the southern Taiwanese city of Tainan, where production using the technology only recently began.
