Apple Is Planning To Source More Than 19billion Chips From The US This Year

As part of a worldwide supply chain change to progressively reduce its reliance on China and elevate India for iPhone production, Apple says it intends to source more than 19 billion processors from the US this year.

Tim Cook, the CEO of Apple, discussed increasing the company’s reliance on Taiwan Semiconductor Manufacturing Co., which is growing its operations in Arizona to six factories.

As the Donald Trump administration prepares to impose punishing tariffs on its Asian rival, he also confirmed anticipation that Apple will eventually manufacture the great majority of its iPhones headed for the US in India, lowering output from China.

On Thursday’s post-earnings conference call, India was referenced nearly as often as China, indicating its growing significance.

However, Cook remained mute when asked how possible consumer electronics taxes may impact Apple’s operations, stating that “it is very difficult to foresee beyond June.”

Investors’ worries about the Cupertino, California-based company’s main issues, including as rising tariff costs and a downturn in China, were not allayed by the eagerly anticipated quarterly results release.

Following the release of Apple’s second-quarter earnings, which featured lower-than-expected sales in China, the company’s shares fell as high as 4.2 percent in late trade on Thursday.

In India, which is growing as a market at a time when Apple’s sales in China continue to fall, Apple has expedited its manufacturing expansion. In the long run, India is also likely to be a more politically favored US trading partner. Twenty percent of the company’s iPhones are produced in the South Asian nation. By the end of next year, it anticipates importing the majority of iPhones for the US from India.

Trump wants Apple to start manufacturing its products in the US in addition to India. However, that is not expected to occur on a large scale very soon. Cook promised to increase local procurement of chips and other components for the time being.

According to Cook, the iPhone manufacturer will receive tens of millions of cutting-edge processors this year from a new TSMC factory in Arizona. According to Bloomberg News, that has begun producing CPUs for entry-level iPads and Apple Watches.

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In keeping with the White House’s efforts to introduce advanced manufacturing to the US, Apple and TSMC have both announced hundreds of billions of dollars in US investments.

In the upcoming weeks, Trump’s administration has threatened to slap further tariffs on countries who do not negotiate new trade agreements, in addition to imposing duties on goods imported from China. Currently, certain devices, such as iPhones, are excluded.

Additionally, Tim Cook talked about how the business sources glass for iPhone screens from the US, likely referring to Corning Inc. Earlier this year, Apple said it would invest $500 billion in the US over the next four years, including by manufacturing AI servers at a plant in Texas.