Apple relies on Taiwan as its most critical source for advanced semiconductor chips, manufactured by TSMC (Taiwan Semiconductor Manufacturing Company), which power iPhones, iPads, and Macs. In 2026, Taiwan provides over 90% of the world's most advanced chips, and Apple, as TSMC’s largest customer, secures major capacity for these processors.
Known as TSMC, the Taiwan Semiconductor Manufacturing Company produces chips for Apple's iPads, iPhones, Watches, and Macs. Its Apple production facilities are located in Shanghai, Taiwan, and Washington state.
One of those chips is likely to be the M6, silicon that will power future MacBook Air and MacBook Pro laptops. Those chips are expected to be based on TSMC's 2nm manufacturing process, smaller than the M5's 3nm process. It's this constant iteration that has seen TSMC become such a vital partner for Apple.
As of 2021, Apple uses components from 43 countries. The majority of assembling is done by Taiwanese original design manufacturer firms Foxconn, Pegatron, Wistron and Compal Electronics with factories mostly located inside China, but also Brazil, and India.
Taiwan is the undisputed leader in semiconductor manufacturing, responsible for over 60% of global chip output, and more than 90% of the most advanced chips. Taiwan Semiconductor Manufacturing Company (TSMC) is the linchpin of this dominance, producing chips for tech giants like Apple, AMD, and NVIDIA.
Taiwan remains a critical hub in the global semiconductor supply chain, accounting for over 60% of global foundry revenue and more than 90% of leading-edge chip manufacturing.
Due to its strong capabilities in OEM wafer manufacturing and a complete industry supply chain, Taiwan has been able to distinguish itself as a leading microchip manufacturer and dominate the global marketplace.
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Hon Hai Precision Industry Co., Ltd. (鴻海精密工業股份有限公司), doing business as Hon Hai Technology Group (鴻海科技集團) in Taiwan, Foxconn Technology Group (富士康科技集团) in China, and Foxconn (富士康) internationally, is a Taiwanese multinational electronics contract manufacturer established in 1974 with headquarters in Tucheng District, ...
The Apple Xinyi A13 store in Taipei, Taiwan, features a distinctive design that resembles a MacBook when viewed from above. This architectural choice is similar to the design of Apple's flagship Michigan Avenue store in Chicago.
Taiwan's main exports are electronics, basic metals and metal products, plastics and rubber, chemicals, and machinery. Its principal export trading partners include China (including Hong Kong), the United States, Japan, Singapore, South Korea, Malaysia, and Germany.
Taiwan is globally renowned for its semiconductor capacity, especially through companies like TSMC, and many of these high-value electronic goods flow directly into U.S. supply chains, fueling sectors such as computing, telecommunications, data centers, and AI.
Today, most of Apple's prized iPhones are manufactured by Foxconn. The advanced chips that power them are made in Taiwan, by the world's largest chip manufacturer, TSMC.
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Since the 1950s, the U.S. Congress has shown a strong interest in Taiwan, first as a bastion of resistance to communism during the Cold War, now as a thriving democracy and a semiconductor manufacturing powerhouse, and throughout, as a potential global flashpoint that could involve the United States in a conflict with ...
TSMC controls 68% of global semiconductor revenue, far ahead of Samsung's 8%. Market concentration poses both risks and opportunities for semiconductor investors. TSMC's advanced manufacturing capabilities keep it ahead of competitors like Samsung.
