Apple is reducing the cost of making iPhones, iPads and Macs by adding more Chinese companies to its supply chain and also looking for new opportunities in other countries.
TSMC and Unimicron manufacture the M1 Ultra chip that will be featured in some of Apple’s new products. In addition, more and more Chinese companies are entering the iPad supply chain, such as BYD.
Apple has also adapted its supply chain by moving some of its manufacturing from China to other countries. While most Macs are still made and assembled in China, its production lines for Apple Watch, iPhone, iPad and AirPods are shifting to countries like Vietnam and India. To reduce its costs, Apple always turns to Chinese suppliers to manage its supply network outside the Asian country.
As for TSMC, Apple’s orders represented 26% of revenue for all of 2021 for a total of $14.3 billion (+20% compared to 2020). Remember that TSMC produces almost all Apple chips that are used on iPhone, iPad, Apple Watch and Mac Apple Silicon.