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In a strategic move to diversify its supply chain, Apple has announced plans to source more than 19 billion chips from the US in 2025, reported Bloomberg.
This plan is part of the tech giant's efforts to reduce its reliance on China and elevate India as a pivotal production hub for its iPhones.
During a post-earnings conference call, Apple CEO Tim Cook highlighted the company's increasing reliance on Taiwan Semiconductor Manufacturing, which is expanding its Arizona operations to six facilities.
Cook also revealed plans to manufacture the majority of US-bound iPhones in India and lowering production from China as the Trump administration threatens to impose retaliatory tariffs on Beijing.
In addition, India's growing importance in Apple's strategy was underscored by frequent mentions during the call.
While addressing concerns about the impact of potential tariffs on consumer electronics and on Apple’s business, Cook stated, "It's very difficult to predict beyond June."
Apple is accelerating its manufacturing expansion in India, which is emerging as a significant market and a politically favoured US trade partner. Currently, one in five iPhones is made in India, with plans to import most iPhones for the US from there by the end of 2026.
"We have a complex supply chain, there’s always risk in the supply chain," Cook explained. "What we learned some time ago was that having everything in one location had too much risk with it and so we have, over time, with certain parts of the supply chain, not the whole thing, but certain parts of it, opened up new sources of supply."
Despite calls from former President Trump for Apple to begin building its devices in the US, such a move is unlikely to happen at scale in the near future. Cook has currently committed to increasing local procurement of chips and other components.
This year, Apple will obtain tens of millions of advanced processors from TSMC's new Arizona facility, which has already started producing processors for low-end iPads and Apple Watches, reported the publication.
Apple and TSMC have announced significant US investments, aligning with the White House's objective to advance domestic manufacturing. While the Trump administration has imposed tariffs on Chinese imports and threatened additional levies, some electronics, including iPhones, are currently exempt.
Cook also noted that Apple sources glass for iPhone screens from the US.
In the second quarter ended 29 March 2025, the tech major posted revenue of $95.4bn, up 5% year over year, and quarterly diluted earnings per share of $1.65, up 8% year over year.