What you need to know
- Apple is lobbying the U.S. government on domestic chip production.
- It suggests the company is interested in bringing chip production to the United States.
- Apple already makes the Mac Pro in Texas.
Earlier today it was reported that Apple spent about $1.5 million on lobbying efforts in the United States in the third quarter of 2020. Now, it appears that one of those areas could result in iPhone production coming to the U.S.
Reported by Bloomberg, Apple is lobbying the United States government on tax breaks for chip production in the country, suggesting that the company may be interested in moving some of its supply chains to the U.S.
In the disclosure report, one of the lines mentioned was "issues related to tax credits for domestic semiconductor production." According to Bloomberg, Apple lobbied the Treasury Department, Congress, and the White House on the issue.
Since releasing its first custom processor in 2010, chips have become a major performance differentiator for Apple. The company designs some of these components in house, but outsources production to Taiwan Semiconductor Manufacturing Co. Many other parts for Apple devices are made in China. That has exposed the company to import tariffs and other risks from a trade war between the U.S. and China. Taiwan, where TSMC operates, has also become an increasing focus of geopolitical tension between China and the U.S.
Apple's potential plans to bring iPhone chip production to the United States aligns somewhat with TSMC, who manufactures chips for Apple, and their plan to build a $12 billion plant in Arizona. Apple currently produces its high-end Mac Pro at its facility in Texas.
Apple has been working to diversify its supply chain outside of China for a while now. It has made investments in India, the United States, and other areas to protect its manufacturing and assembly process.