Apple Inc. will start purchasing chips from a chip fab under construction in Arizona, USA, in order to reduce its dependence on Asian supply chains, reports SCMP (South China Morning Post) and Bloomberg.
Apple CEO Tim Cook made the disclosure during an internal meeting in Germany with local engineering and retail employees as part of a recent tour of Europe, according to remarks reviewed by Bloomberg News. The report further states that Apple may also expand the supply of chips to its European factories.
Recently, TSMC also revealed that the building of its second chip factory in Arizona is under construction.
Analysts say China contractors have little choice but to “jostle for business” from the maker of iconic iPhones and iPads.
As Apple reassesses supply chain risks in China and diversifies more production to countries such as India and Vietnam, so too are Chinese firms and investors rethinking the cost-benefit analysis of being overly reliant on the US tech giant for business, according to corporate filings and analysts.
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