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The US is funding tens of billions of dollars through the CHIPS and Science Act to revive the domestic semiconductor industry. Photo: Bloomberg

According to Insider 's sources, TSMC – the world's largest chip foundry – has started producing chips for Apple at one of its factories in Phoenix, USA.

While not yet at full capacity, it bolsters US efforts to produce more chips, which have faced some challenges in recent years.

In 2020, TSMC announced plans to invest billions of dollars in Arizona and create thousands of jobs.

TSMC is on track to operate at full capacity in the first half of 2025, a TSMC spokesperson said.

Manufacturing chips for Apple in the US is a major milestone, Dylan Patel, an analyst at semiconductor consultancy SemiAnalysis, said, suggesting that foundries are on track.

TSMC appears to be manufacturing the A16 chip in Apple’s home country, a sign that Apple has enough confidence in its US factory to “entrust” it with one of its most advanced chips, analyst Mark Muro said.

It's enough to appease skeptics about whether US factories can soon reach TSMC standards.

TSMC's commitment to build three chip factories in Phoenix is ​​central to the Biden administration's efforts to "revive" the chip industry.

In 2022, President Biden signed the CHIPS and Science Act, funding $52.7 billion for semiconductor R&D, manufacturing, and workforce training.

Of this, $39 billion is earmarked for local chip manufacturing. In addition to creating jobs, the government hopes to ensure supply chain security and help the US reduce its dependence on advanced chips from Asia.

(According to Insider)