Apple has pledged $100 billion to invest in U.S. chip manufacturing and has begun discussions with Intel to explore potential manufacturing collaborations.

Taiwan Semiconductor Manufacturing Company dominates the most advanced chip production, accounting for about 90% of the global supply and including Apple’s custom silicon, making Taiwan a critical hinge in the world’s tech economy and raising potential economic crises if its chip supply were disrupted.

U.S. policymakers pushed for domestic semiconductor manufacturing and subsidies, shaping the CHIPS and Science Act of 2022 to expand local production.

The briefing featured leaders from Nvidia, AMD, and Qualcomm, with intelligence briefers including CIA Director Burns and DNI Haines outlining the geopolitical and security context.

TSMC has committed roughly $165 billion to U.S. investment, including land for more Phoenix-area plants, and its Arizona facility produced Nvidia’s first U.S.-made AI chip, though packaging remains tied to Taiwan.

A classified CIA briefing in Silicon Valley in mid-2023 included warnings from Tim Cook about potential Chinese plans to attack Taiwan by 2027, according to a New York Times investigation.

Taiwan maintains a policy of keeping its most advanced manufacturing on the island, a posture dubbed the 'silicon shield,' while acknowledging ongoing geopolitical risks.

Despite initial hesitancy, major tech firms are increasing domestic chip production commitments, even as domestic-priced chips can be pricier than Taiwan-sourced counterparts.

A 2022 confidential report warned that losing Taiwan’s chip supply could shrink U.S. GDP by about 11%, with a 2024 Bloomberg estimate placing global costs in a multi-trillion-dollar range in a conflict scenario.