US vs China trade war affected Huawei but no worries for Apple.
Huawei faced a serious business setback because of the trade war. Trump Administration banned Huawei smartphone sales in the USA. They also took extreme measures to cut of Huawei Chip supplies. But Apple is different, China can’t control what Apple get and what not. The Primary manufacturer for Apple TSMC will continue to manufacture for Apple and China can’t take down Apple.
TSMC(Taiwan Semiconductor Manufacturing Co.) plans to build an advanced chip manufacturing factory in Arizona. This might be the result of Trump administration’s decision about the license requirement for using any USA Softwares for Chip manufacturing. The Company says the new plant will create 1600, “high-tech professional jobs”. The total spends on the plant could be about 12$ billion by 2029. The construction will start in 2021 and production to start in 2024.
However, what financial incentives will TSMC get from federal or state government is not yet clear. but the Wall Street Journal report states that State and Commerce departments are involved in the plans. In addition to Apple, TSMC also considers Nvidia and Huawei among its clients. So, this could also be a positive thing for Huawei.
Chip manufacturing plants can be expensive to build. As noted by Bloomberg TSMC spent almost 17$ billion in its primary manufacturing plant. TSMC was also rumored to build a 5nm chip for Apple macs which might make macs even cheaper. If TSMC shifts to the USA it will benefit its business as well as many other companies including Apple. For updates on 5nm Apple chip subscribe to our newsletter. Thanks for visiting. Stay Safe! Stay Humble!.
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