Ever Trend Zone Last week, Apple struck us with a bit of a surprise and introduced us to a new base model iPad with an A16 chip. The new iPad wasn’t that surprising, but the A16 chip certainly did. Rumors have long suggested that you should expect an A17 Pro chip, but that never happened.
However, the A16 chip may offer special perks. This guarantees that the product can remain at a price tag of $349 in the short term.
US-made A16 chip
Last year, TSMC, a partner at Apple Chipmaking, began producing 4nm chips in the US at its new Arizona plant. Yet yields are lower than what we are achieving in Taiwan, but that is certainly a strong start. TSMC has begun production of A16 chips at its Arizona plant. This seemed like a strange choice at the time.
My sources say Apple’s A16 SoC (…) is currently being manufactured at a small but important figure in Phase 1 of TSMC’s Fab 21 in Arizona. As the second phase of Phase 1 Fab is completed and production occurs while it is underway, volume will increase dramatically, bringing the Arizona project back on track to meet its production targets for the first half of 2025.
But now we know. Apple had not planned the iPad 11 to support Apple Intelligence, making it the perfect testbed for these new US-made A16 chips. The report initially said volume production would begin in the first half of this year and would perfectly match the launch of the new iPad 11.
iPad 11 Customs Loop
Apple has not confirmed whether the iPad 11 uses these US-made A16 chips, but it appears to be more likely to be used to some extent. Otherwise, there is no product to put these chips in – except for the iPhone 15, it may be on the rise in production.
Plus, as highlighted by Bloomberg’s Mark Garman, using the US-made A16 chip on a new iPad is actually a strategic play. Given the looming threat of tariffs from the Trump administration, Apple could receive some sort of exemption as Chip is built in the US. This could ensure Apple’s margins on one of the most affordable products and prevent any kind of price hike.
Of course, tariff news is very back and forth, and whether long-term tariffs are still in the air. Nevertheless, saying that Apple is the first product to have a US-made silicone product can’t hurt Apple.
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