Apple is seeking tax incentives from the U.S. government for domestic chip production, suggesting it may be aiming to move more iPhone manufacturing to the United States.
According to Bloomberg, second- and third-quarter lobbying disclosure reports show that Apple is lobbying officials in the Treasury Department, Congress and the White House on tax issues, including “tax credits for domestic semiconductor production.
Apple designs many of its own chips, including the A-series chips used in the iPhone and iPad and the Apple Silicon chips used in future Macs. The chips are developed in-house at Cupertino, but production is outsourced to TSMC.
Apple’s lobbying efforts suggest that the company may want to move production to the United States so it won’t have to deal with tariffs and trade tensions between the U.S. and China.
Apple’s recent lobbying coincides with a push by the company and its partners to move some production from China to the U.S., as well as a broader effort by the U.S. semiconductor industry to gain government support for increased domestic production.
Tim Powderly, an Apple veteran and director of federal government affairs, is leading Apple’s lobbying efforts, according to Bloomberg. Apple’s previous policy executive, Cynthia Hogan, left the company in May after being tapped to serve on Joe Biden’s vice presidential search committee.
Most Apple products are made overseas, but the 2013 Mac Pro is made in Austin, Texas. The same Texas plant was also responsible for the final assembly of the new Mac Pro models, and Apple decided to use that facility after receiving a tariff exemption.
Apple’s chip partner TSMC announced plans in May to open an advanced chip factory in Arizona, which is expected to produce 5-nanometer chips once it opens. Apple’s most recent A-series devices use the A14 chip, which is built on a 5-nanometer process.
Apple in 2018 pledged to spend $350 billion over five years to boost the U.S. economy and provide funding to U.S. companies, including Corning and Finisar, that make iPhone components, IT Home has learned.
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