Apple CEO Cook says tech giant will start sourcing chips from Arizona in 2024

Apple CEO Tim Cook said on Tuesday that the tech giant would source some of its chips from Arizona as the company looks to diversify its supply chain, according to Bloomberg.

The news outlet, citing an internal meeting that Cook had in Germany with local engineering and retail employees, added that the Apple chieftain said the tech giant would be buying from a plant in Arizona that starts in 2024 and may also look to buy in Europe.

“We’ve already made a decision to be buying out of a plant in Arizona, and this plant in Arizona starts up in ’24, so we’ve got about two years ahead of us on that one, maybe a little less,” Cook told the employees. “And in Europe, I’m sure that we will also source from Europe as those plans become more apparent.”

Also attending the meeting were Apple’s (AAPL) services head Eddy Cue and Deirdre O’Brien, its head of retail and human resources, Bloomberg added.

Taiwan Semiconductor (TSM) is currently building a plant in the Grand Canyon State that is scheduled to be completed in 2024.

Earlier this month, it was reported that Taiwan Semiconductor (TSM) was planning a multi-billion dollar expansion to its Arizona factory.

Intel (INTC) is also in the process of expanding its plant in Ocotillo, Arizona and recently disclosed that it had partnered with Brookfield Infrastructure Partners (BIP) (BAM) in a deal worth up to $30B to help pay for its expansion plans.

During the meeting, Cook said that 60% of the world’s processors come from Taiwan, but added that “regardless of what you may feel and think, 60% coming out of anywhere is probably not a strategic position.”

Cook also said that he believes there will be a “significant investment in capability and capacity in both the United States and Europe to try to reorient the market share of where silicon is produced.”

The U.S. government recently passed the CHIPS and Science Act aimed to spur domestic production and manufacturing of semiconductors.

Europe also recently passed its own version of the CHIPS Act.

Apple shares gained 1.2% to finish at $150.04.

Last week, Apple said that it will invest $450M to power the new Emergency SOS system available on the iPhone 14. Seeking Alpha