Apple Plans to Source 19 Billion Chips from US, Expands Operations in Arizona

Apple is shifting its global supply chain strategy by planning to source over 19 billion chips from the US in 2025, mainly through expanded operations by Taiwan Semiconductor Manufacturing Company (TSMC) in Arizona. This move is aimed at reducing reliance on China and increasing production in India, which is expected to manufacture most US-bound iPhones by the end of 2026. CEO Tim Cook emphasized the importance of diversifying the supply chain to manage risks and highlighted India's rising status both as a production hub and as a key market. Despite political pressure from former President Trump to build devices in the US, large-scale domestic manufacturing remains unlikely in the near future. The changes come amid threats of new tariffs on China and declining sales in the Chinese market, reinforcing Apple's strategy to rely more on politically favorable partners like India. Apple has already accelerated manufacturing in India, where one in five iPhones is currently made.