Apple Watch’s S9 Chip Now Made in the USA

In a significant move to bolster domestic semiconductor production, Apple has commenced manufacturing its S9 System-in-Package (SiP) chips for the Apple Watch in the United States (via MacRumors).

The production is taking place at Taiwan Semiconductor Manufacturing Company’s (TSMC) facility near Phoenix, Arizona. TSMC, a leading semiconductor manufacturer and a key supplier for Apple, began operations at this plant in 2024.

The facility, known as Fab 21, initially focused on producing Apple’s A16 Bionic chips for the iPhone 15 series. The transition to include the S9 SiP for the Apple Watch signifies an expansion of its manufacturing capabilities.

Both the A16 Bionic and S9 chips are fabricated using TSMC’s advanced 4-nanometer process technology, referred to as “N4.” This shared technological foundation has enabled TSMC to adapt its production lines efficiently to accommodate multiple products. Currently, the Arizona facility operates with a monthly output of approximately 10,000 wafers, shared among Apple’s chips and other clients, including AMD.

This development aligns with the objectives of the CHIPS Act, a U.S. government initiative aimed at revitalizing domestic semiconductor manufacturing. The Act has facilitated investments in facilities like TSMC’s Arizona plant, contributing to the growth of the U.S. semiconductor ecosystem.

However, addressing challenges related to workforce development and cost competitiveness will be crucial to sustaining this momentum.

Apple’s decision to produce the S9 chip domestically mitigates risks associated with global supply chain disruptions and geopolitical tensions. The move also reflects a broader trend among tech companies to diversify their manufacturing bases and invest in domestic production capabilities.