Apple (AAPL) has much to celebrate on the 44th anniversary of its initial public offering (IPO), with a strong year marked by a 25% increase in share price. In addition to its stock performance, the tech giant has been making headlines with its latest product update: a software integration between Siri and ChatGPT, marking a significant step forward in its artificial intelligence (AI) efforts.

As Apple continues to enhance its AI features through the iOS 18.1 update, including tools for generative writing and email summaries, its need for cutting-edge semiconductors has only grown. Fortunately for Apple, one of its largest chip suppliers, Taiwan Semiconductor Manufacturing Company (TSMC), has announced exciting developments that will benefit both companies.

TSMC has been a crucial partner for Apple long before the AI boom sparked by ChatGPT in late 2022. The two companies first collaborated in 2010, when Apple signed a contract that helped propel TSMC to the forefront of the semiconductor industry. Over the past decade, TSMC has become a dominant supplier of chips for Silicon Valley, and while the company remains headquartered in Taiwan, it is increasingly establishing a manufacturing footprint in the U.S.

Recently, TSMC unveiled its new 3.5-million-square-foot fabrication facility in Phoenix, Arizona, described as the most advanced chip fab in the country. This facility is currently in its pilot phase, producing sample wafers for semiconductors. For Apple, this is an especially significant development, as the company has committed to being the biggest customer for chips made at the Arizona site. Tim Cook, Apple’s CEO, expressed his enthusiasm on social media, noting that Apple would soon be using chips made in the U.S.

Looking ahead, TSMC has ambitious plans for its U.S. operations, including a $65 million investment to build two additional fabs by 2030. Rick Cassidy, President and CEO of TSMC Arizona, stated that the company is "nearly back on schedule" as it prepares for expanded production capacity.

This expansion is good news not only for Apple but also for other major tech companies that rely on TSMC's chips, including Nvidia and AMD. As TSMC grows its presence in the U.S., its ability to meet the rising demand for semiconductors will likely lead to an even broader customer base. As Daniel Newman, CEO of The Futurum Group, remarked in a recent interview with CNBC, TSMC’s ability to set prices due to its high-quality, dependable products is a significant advantage in the competitive semiconductor market.