Apple's A16 chips, originally debuted in the iPhone 14 Pro, are now being produced at TSMC’s Arizona facility, according to reports from Taiwan-based journalist Tim Culpan. While current production volumes are small, they mark a significant milestone in U.S.-based chip manufacturing. The chips are made using TSMC's 4nm N4P process, identical to that used in the company's Taiwan factories, ensuring consistency in quality and performance.

This development is part of the broader CHIPS and Science Act, a $39 billion U.S. federal initiative aimed at bolstering domestic semiconductor production. Full-scale manufacturing at TSMC’s Arizona plant is expected by 2025 as the facility ramps up production in the second phase of its expansion.

The decision to manufacture the A16 chip in Arizona suggests that Apple has enough confidence in the new U.S. facility to produce one of its most advanced mobile processors there. These chips may be used in an upcoming iPad model or more likely, in the next-generation iPhone SE, which is rumored to feature the A16 processor.

Alongside this, TSMC has appointed Rose Castanares as president of TSMC Arizona, following Brian Harrison, who will step down on October 1 to serve as an advisor to the company before retiring at the end of the year. Castanares, who has been with TSMC for over 26 years, will oversee the company’s substantial investments in the Arizona fabs.

TSMC is constructing two advanced fabs in Arizona. The first fab is expected to start mass production in 2024 using the 4nm process, while the second fab is set to produce wafers with 3nm and 2nm processes by 2028, tapping into growing demand for AI applications. The company also plans a third fab, which will use 2nm or more advanced technology, with production slated to begin by the end of 2030. This brings TSMC’s total investment in Arizona to over $65 billion.

As TSMC refines its processes at the Arizona facility, yields for the A16 chip are expected to match those achieved in Taiwan in the coming months, according to Culpan.