Apple Inc. has confirmed that it will source $19 billion worth of semiconductors for its devices from chip manufacturers in the United States, marking a significant shift in its supply chain strategy amid escalating global trade tensions.
In a call with analysts following the company’s Q2 earnings release, Apple CEO Tim Cook revealed the procurement plan while warning that new tariffs imposed on China-origin components and manufacturing could cost Apple an estimated $900 million in the current quarter alone.
“We’re committed to investing in American innovation,” Cook said. “Our $19 billion chip sourcing plan underscores Apple’s strategic pivot toward a more resilient and localized supply chain.”
🧠 U.S. Chip Manufacturing Gets a Boost
The bulk of Apple’s new domestic chip orders are expected to come from TSMC’s Arizona fab, which recently began limited production, and from long-time U.S. partner Broadcom, which is ramping up its 5G and RF component output for Apple devices.
The move aligns with Washington’s push to onshore chip production through the CHIPS and Science Act, which offers subsidies and tax incentives for semiconductor firms expanding U.S. operations.
“This is a milestone not just for Apple, but for America’s tech manufacturing renaissance,” said Commerce Secretary Gina Raimondo.
💸 Tariffs Bite
Apple's announcement came just hours after the Biden administration confirmed the reimplementation of tariffs on certain consumer electronics components imported from China, part of a broader recalibration of trade policy that aims to counter industrial overcapacity and ensure supply chain security.
Cook stated that the expected $900 million impact will primarily hit Apple’s margins in the iPhone and Mac product lines. However, he assured investors that the company would not pass the full cost to consumers “in the immediate term.”
📦 Supply Chain Strategy Recalibrated
Industry experts say Apple’s proactive stance signals a larger trend among U.S. tech giants diversifying away from China and investing heavily in “friendly-shoring” strategies — building out capacity in the U.S., India, Vietnam, and Mexico.
“Apple is setting a new benchmark for high-volume chip localization,” said Anjali Mehta, a senior analyst at SiliconEdge Research. “The long-term benefit is geopolitical insulation and tighter integration with U.S. economic policy.”
📉 Market Reaction
Apple shares fell slightly in after-hours trading, dipping 1.2% amid concerns over the near-term margin pressure. However, analysts remained largely upbeat on the company’s long-term fundamentals, citing strong iPad and services growth.
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