Tim Cook confirms Apple will soon use chips built in America

FFR

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Produce chips in the US then ship it to China India and Vietnam.

This is going to be terrible for the environment.
 

imwjl

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At what additional cost to the end user?????

Produce chips in the US then ship it to China India and Vietnam.

This is going to be terrible for the environment.

The elements to consider here are stability in supply chain, better worker conditions, and an international air freight exec family associate says likely more efficient or better utilization with air freight.
 

FFR

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The elements to consider here are stability in supply chain, better worker conditions, and an international air freight exec family associate says likely more efficient or better utilization with air freight.

Stability of supply chain is highly unlikely, it is a small factory compared to the ones located in Asia, and by no means can it replace them if something happened to China/Taiwan.

Airfreight would still be detrimental to the environment compared to components manufactured and shipped within China., not to mention much more expensive.

It’s not sustainable when almost all of the supply chain is based in and around China.
 

imwjl

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Stability of supply chain is highly unlikely, it is a small factory compared to the ones located in Asia, and by no means can it replace them if something happened to China/Taiwan.

Airfreight would still be detrimental to the environment compared to components manufactured and shipped within China., not to mention much more expensive.

It’s not sustainable when almost all of the supply chain is based in and around China.

My understanding is a start, and part of a trend with several manufacturers.
 

Lee_Bo

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The elements to consider here are stability in supply chain, better worker conditions, and an international air freight exec family associate says likely more efficient or better utilization with air freight.

Which are all cost factors when manufacturing that chip in the US. The price will go up. Then everyone will be complaining about that.
 

imwjl

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Which are all cost factors when manufacturing that chip in the US. The price will go up. Then everyone will be complaining about that.

This is a has been going on and will increase across much of what we consume beyond tech items. Consumer goods, food, pharma, automotive and much more are moving to be less dependent on some nations and geographical locations. Some of the complaints are old news already because many started this a while ago.
 

FFR

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My understanding is a start, and part of a trend with several manufacturers.

Apple sells atleast
240 million iPhones every year
20-30 million macs a year
30-40 million iPads a year

That’s over 310 million processors per annum not counting Apple Watch, AirPods, HomePods, apple tvs, and apple displays that each utilize either an a,m,s, or h series soc.

This one factory isn’t even a beginning.

Foxconn hasn’t even started operating its Wisconsin factory, everyone just went silent on that one
 

imwjl

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Apple sells atleast
240 million iPhones every year
20-30 million macs a year
30-40 million iPads a year

That’s over 310 million processors per annum not counting Apple Watch, AirPods, HomePods, apple tvs, and apple displays that each utilize either an a,m,s, or h series soc.

This one factory isn’t even a beginning.

Foxconn hasn’t even started operating its Wisconsin factory, everyone just went silent on that one

I'm a WI resident hoping we won't have to pay for that mess. For that, keep in mind the Foxconn rescue/investment in Lordstown where they actually reached homologation a week or so ago.

For the rest, don't mistake my thinking the new US plant is an end all or total solution. My only point is we will likely keep seeing less concentration in manufacturing.
 

FFR

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I'm a WI resident hoping we won't have to pay for that mess. For that, keep in mind the Foxconn rescue/investment in Lordstown where they actually reached homologation a week or so ago.

For the rest, don't mistake my thinking the new US plant is an end all or total solution. My only point is we will likely keep seeing less concentration in manufacturing.

Here’s hoping Wisconsin residents aren’t made to pay for someone else’s mess.

No idea about lordstown but it seems Foxconn is ramping up investment in India by another 500 million dollars. It makes sense given India’s proximity to China and the rest apples supply chain.
 

Up_And_Away

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At what additional cost to the end user?????

This is the interesting question with a potentially unattractive underbelly. How can a plant in the U.S. with higher worker cost, massively higher regulation, legal, insurance etc cost possibly make competitively priced chips versus a plant in China or Vietnam? Doesn’t the higher production cost have to cause a higher price for the iPhone?
The answer is surprisingly very much not necessarily. It’s in the details underbelly. Both federal and state governments go ‘pssst, don’t say anything but if you build the plant here we will double stack you up with tax credits’. This answers the question how a Tesla could be built in the staggeringly expensive Silicon Valley (big time tax credits).
Now if we just pray the government’s spending never must be paid by us taxpayers, it’s all a good deal for everyone:):).
 

imwjl

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Here’s hoping Wisconsin residents aren’t made to pay for someone else’s mess.

No idea about lordstown but it seems Foxconn is ramping up investment in India by another 500 million dollars. It makes sense given India’s proximity to China and the rest apples supply chain.

Lordstown is the EV pickup truck maker in a former GM plant. Foxconn did a big investment or rescue. Recent news was they reached homologation with 500 production vehicles built. It sent my brain on a tangent thinking they may well have the manufacturing prowess to make very different stuff including the rumored Apple or others' cars. Also, a chance for that so far big mess of a property in S. E. WI.

The WI Foxconn plant is not in the warm places manufactures like these days, but you can draw a commuter and easy transport circle around it that would also be the maybe 13+ million people in Chicago, Milwaukee and towards the university (Madison) that is a whole lot of labor and professional talent. In earlier times it was a same region that from ag, auto, writing instruments, and machine making influenced the whole world.

This is the interesting question with a potentially unattractive underbelly. How can a plant in the U.S. with higher worker cost, massively higher regulation, legal, insurance etc cost possibly make competitively priced chips versus a plant in China or Vietnam? Doesn’t the higher production cost have to cause a higher price for the iPhone?
The answer is surprisingly very much not necessarily. It’s in the details underbelly. Both federal and state governments go ‘pssst, don’t say anything but if you build the plant here we will double stack you up with tax credits’. This answers the question how a Tesla could be built in the staggeringly expensive Silicon Valley (big time tax credits).
Now if we just pray the government’s spending never must be paid by us taxpayers, it’s all a good deal for everyone:):).

In lots of scenarios manufacturing with lots of automation and sophistication means points of presence where things are not about the cheapest labor. It is much smaller scale than iPhone making or an auto plant, but a connection I have who is exec in a supplier to aircraft makers - commercial and military - describes his plants in different spots in the world. He says they need talent, people who are not crooks, and lots of other resources beyond labor and real estate costs. Friends of mine are in high tech sporting goods requiring skill and manufacturing prowess. They've brought making some most specialized and most expensive stuff back to US.

Stuff like that has me thinking we might not see same trends we've witnessed in recent decades.
 

Up_And_Away

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In lots of scenarios manufacturing with lots of automation and sophistication means points of presence where things are not about the cheapest labor. It is much smaller scale than iPhone making or an auto plant, but a connection I have who is exec in a supplier to aircraft makers - commercial and military - describes his plants in different spots in the world. He says they need talent, people who are not crooks, and lots of other resources beyond labor and real estate costs. Friends of mine are in high tech sporting goods requiring skill and manufacturing prowess. They've brought making some most specialized and most expensive stuff back to US.

Stuff like that has me thinking we might not see same trends we've witnessed in recent decades.

Oh definitely efficiencies can equalize some costs. But the tax credits are a must. There’s just no way around the lopsided ongoing regulatory and legal costs. The equivalizer there is government saying ‘here is ten years of tax credits’.
 

Wotchered

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Apple sells atleast
240 million iPhones every year
20-30 million macs a year
30-40 million iPads a year

That’s over 310 million processors per annum not counting Apple Watch, AirPods, HomePods, apple tvs, and apple displays that each utilize either an a,m,s, or h series soc.

This one factory isn’t even a beginning.

Foxconn hasn’t even started operating its Wisconsin factory, everyone just went silent on that one

As far as I know the Wisconsin “factory” has never been fitted out !
 

imwjl

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As far as I know the Wisconsin “factory” has never been fitted out !

Yes, it sits. One of my work vendor associates lives near it so I get more reminders than when it is in the local news cycle. Since the mess started there's less one party stranglehold and that is good as far as a likelihood something might occur. The people who created the mess do not occupy management of all the agencies and attorney general seat.

What might be manufactured there is not something I care about as much as something positive occurring, and the whole state not paying for such a classic political grifters type mess.
 

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