Apple launched the iPad 11 last week. The new product is equipped with an A16 chip instead of the rumored A17 Pro.
According to media reports, Apple’s choice of the A16 chip allows the iPad 11 to maintain its price of $349 (the price of the Chinese version starts at 2,999 yuan).
Another reason is that the A16 chip equipped with the US version of iPad 11 is manufactured in a US factory. Previously, the US Department of Commerce announced that TSMC’s chip factory in Arizona has begun producing 4nm chips. This is the first time that TSMC has started large-scale production of advanced chips in the United States.
It is reported that Apple’s A16 chip has been put into production in the first phase of the Fab 21 factory in Arizona. The current output is small, but when the second phase is completed and fully put into production, the output will increase significantly, ensuring that the project can achieve the expected production target in the first half of 2025.
Mark Gurman said that the iPad 11 uses the A16 chip manufactured in a US factory, and Apple has reduced tariffs to a certain extent, thereby ensuring the profit of the iPad 11 and avoiding being forced to raise prices due to rising tariffs.
Previously, the U.S. Department of Commerce stated that by 2030, the United States will produce about 20% of the world’s advanced chips. In the past, the production capacity of advanced chips in the United States was almost zero.
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