Apple surprised fans last week with its new base-model iPad featuring an A16 chip. While a new iPad was expected, the A16 chip was a pleasant twist. Many thought it would come with an A17 Pro chip instead, but that didn’t happen.
The A16 chip might have an added bonus, helping keep the iPad’s price steady at $349 for now.
US-Made A16 Chips
Last year, TSMC, Apple’s chip partner, started producing 4nm chips in Arizona. Although the production is slower than in Taiwan, it’s a promising start. They’ve begun making A16 chips there, which raised some eyebrows at first. What would Apple use them for?
Sources say Apple’s A16 SoC is currently being produced in small numbers at TSMC’s Arizona plant. Production is set to increase significantly when the facility’s next phase is finished, aiming for full production by early 2025.
Now we have the answer. Apple’s iPad 11 was likely a perfect fit for these new A16 chips. Reports suggest that large-scale production aligns nicely with the iPad’s release.
iPad 11 Tariff Loophole
While Apple hasn’t officially confirmed that the iPad 11 uses these US-made A16 chips, it does seem likely. If not, there wouldn’t be a purpose for these chips, especially as production for the iPhone 15 slows down.
As Mark Gurman from Bloomberg highlights, using US-made chips offers Apple a smart strategy. With potential tariffs from the Trump administration, these chips could qualify for exemptions. This move could help Apple maintain its margins on this budget-friendly iPad and avoid price hikes.
Tariff discussions can be unpredictable, so it’s hard to say what will happen long-term. Still, having a product powered by American-made chips is a big win for Apple.
Check out this related article: Exciting New Features Coming: Apple to Release VisionOS 3 Update That Users Won’t Want to Miss!
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