Apple Supply Chain Increases U.S. Production

Apple Supply Chain Increases U.S. Production
ElisaRiva / Pixabay

Apple Supply Chain Increases U.S. Production

Apple Inc. (NASDAQ:AAPL) is a true American company, and so it would only make sense that they would keep most of their operations exclusively in the United States. Like a lot of businesses throughout the world, Apple cuts corners by shipping the majority of their production lines in China. Unfortunately, the company has received a lot of backlash in the past few months regarding some tragic incidents at one of the Foxconn factories where their production lines are located. The good news is that some of the key building components for popular Apple products, like the iPhone and iPad, are already built right here in the USA.

According to Tim Cook, the chief executive officer for Apple, the Samsung ARM processors are produced in Austin, Texas, and Corning Gorilla Glass is made in Kentucky. Not only that, but many other key components like power controllers, Wi-Fi chips, accelerometers, audio/video chips, proximity sensors, and much more come from American manufacturers.

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The one problem with everything here is that we don’t know how much, if all the components mentioned above are made in America, even if they’re sold here in the United States. Some chipmakers have their products made in different factories all across the world, so it’s virtually impossible to trace back the true origins of each and every piece that comprise each product.

On a positive note, a few of the companies that Apple Inc. (NASDAQ:AAPL) has worked with are moving some of their production lines to the United States, like Avago Technologies and Texas Instruments.

Avago Technologies is currently in the expansion phase of their manufacturing plant in Fort Collins, Colorado. Their goal is to purchase $130 million worth of manufacturing supplies and equipment. It’s reported that Avago has made special custom parts that allow one handset to connect to many different wireless networks around the world for iPhone 4s.

Texas Instruments is slowly increasing their production lines in some of their Texas-based manufacturing plants. The factory has seen an increase in orders for their power management chips, which are often used in smartphones. They also supply a wealth of technology components for the iPhone and iPad.

It’s great that Apple is working more with companies who make their products in the United States, but I doubt this trend will grow. Most companies frequently shift production lines and plants according to business-related matters, like budgeting. I would love to see more companies follow Apple’s route, but I think it’s highly unlikely they will, at least for now.

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