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Forbes: Apple Could be About to Spend $10 Billion on a Chip Factory

Forbes: Apple Could be About to Spend $10 Billion on a Chip Factory

It’s been rumored for quite awhile that Apple plans to move some of its microprocessor production from Samsung to TSMC, or even possibly Intel. Now Forbes reports that it’s possible Apple is about to invest $10 billion on a chip factory in the U.S.

Forbes:

It would be a solid business decision for Apple to make this move but it is not without risks.  Given the huge quantities of components needed to make the hundreds of millions of units it sells and the intricacies of these devices Apple does expose itself to product disruptions.

Larry Rulison at the Albany Times Union writes that Deloitte is searching for a major semiconductor facility for an unnamed client and he believes it is possibly TSMC, who would use it build components for Apple (known as Project Azalea). The company has looked at Austin, and New York, and indications are the New York location is the frontrunner. Estimates are that the plant could cost up to $10 billion.

Apple has more than enough in its Scrooge McDuck-like pile of cash, and it has been known to make investments in its suppliers. As of the end of September the company had over $121 billion in cash and investments and an additional $15 billion in machinery and equipment. So, they could make a move like this and barely move the gauge on the money tank.

The story is developing, so we’ll be keeping an eye on things, and let you know if and when Apple makes its move.

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