APPLE

Apple plans to purchase more than 19 billion semiconductors from the United States to reduce its dependence on China

Apple plans to purchase more than 19 billion semiconductors from the United States by 2025. This measure is part of a reconfiguration of the technology company's supply chain, which seeks to reduce its dependence on China.

At the same time, the company is directing efforts to consolidate India as a central location for the production of its iPhones. The expansion of the Taiwan Semiconductor Manufacturing (TSMC) facilities in Arizona, USA, to six units, was highlighted by Apple's CEO, Tim Cook, as a relevant factor in this strategy.

The focus on North American components goes beyond the plans for 2025. Later this year, Apple will receive tens of millions of processors from the new TSMC factory in Arizona. This unit has already started production of processors for lower-end iPad and Apple Watch models, according to Bloomberg. The company also sources glass for iPhone displays from the US, possibly from Corning, according to Cook.

These investments by Apple and TSMC in the US are in line with the US administration's goals to boost domestic manufacturing. The company also announced in February 2025 a $500 billion investment in the US over the next four years, which includes the production of artificial intelligence servers in Texas.

India as Apple's manufacturing hub...India is playing an increasing role in Apple's manufacturing structure. Cook has indicated plans to manufacture most of the iPhones destined for the US market in India, reducing production in China. This change comes against the backdrop of potential retaliatory tariffs on Chinese products.

Currently, one in five iPhones is produced in India. Apple intends to have the majority of iPhones imported into the US come from the country by the end of 2026. Cook justified the geographic diversification of the supply chain as a risk management measure, saying that concentrating all production in a single location represented excessive risk (Source: Bloomberg). Despite calls for Apple to start building devices in the US, such a large-scale scenario is not considered likely in the short term.

The reorientation of the supply chain is taking place while Apple continues to perform well financially. In the second fiscal quarter, ended March 29, 2025, the company recorded revenue of $95.4 billion, an increase of 5% compared to the same period in the previous year.

Diluted earnings per share were $1.65, representing an increase of 8%. Regarding the impact of potential tariffs on consumer electronics, Cook said it was difficult to make predictions beyond June 2025. Currently, some electronic products, such as the iPhone, are exempt from the tariffs applied to Chinese imports by the US.

Apple is moving forward with a diversification of its global supply chain, increasing the acquisition of components, including semiconductors, in the United States and transferring a significant portion of iPhone production to India.

This strategy, which involves partners such as TSMC and substantial investments in the US, aims to mitigate risks and adapt to the geopolitical and commercial context, while the company maintains positive financial results.

mundophone