Apple wants to boost up US chip production

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Apple is lately lobbying the idea to move some production away from China. The American based tech firm, Apple has been suggesting the U.S government on tax reliefs to support domestic chip production hinting that the iPhone maker is very keen to move some of its production chain into the United States.

The Technology giant Apple said that they lobbied many officials from the government on tax topics which also includes issues relating to tax credit for local chip producers. After releasing their first custom processor in 2010, chips have become the major source for the Apple to grow as a company. Apple admits that the company designed some of its chip’s component in the country but outsourced production line to Taiwan. And several other hardware parts of the Apple are made in China. Whether because of import tariffs and other risks from a trade war between America and China, this has severely harmed the company production and conduction of business.

Therefore, in such adversities Apple decided to lobbying the idea to push its some production facilities away from China and even bringing back the production line to the home. Meanwhile, the U.S semiconductor industry is also giving an effort to get the government support to increase the chip production within the States.

Apple and many other chip manufactures want to invest billions of dollars in the United States therefore the companies have been lobbying the U.S government officials for tax breaks. In 2013, Apple started making low-volume Mac computers in the country. They used the same plant in Texas to conduct final assembly line for a new version too. This became possible only after the company received a break on tariffs.

Apple also uses different component in their devices from various chipmakers that builds some of their products within the States. The company has also started using Qualcomm again for their new iPhones. Intel, the current Mac processor builders also builds some of their chips in the country. Hence, Apple is lobbying the officials for the tax break so that the tech giants can again feel confident and hassle free to make chips within the country and reduces the dominance of China in the world of chip production.

                 

Updated on 2 MARCH, 2021 by Shaz




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