Analyst(s): Ray Wang
Publication Date: August 14, 2025
Applied Materials is partnering with Apple and Texas Instruments to supply US-made semiconductor equipment and invest $200 million in a new Arizona facility, reinforcing domestic chip production and Apple’s $600 billion American Manufacturing Program.
What is Covered in this Article:
- Applied Materials will deliver US-built chipmaking gear from its Austin hub to Texas Instruments’ fabs, which produce Apple semiconductors.
- Applied committed $200 million to a new Arizona components plant, on top of the $400 million already invested in US manufacturing.
- Apple’s $600 billion American Manufacturing Program taps Applied, TI, and others to boost US semiconductor capacity.
- Apple and TI ramp tool installations and fab builds in Utah and Texas, with Applied supplying critical manufacturing equipment.
- The program targets an entirely domestic silicon supply chain and thousands of new US manufacturing, R&D, and services jobs.
The News: Applied Materials is partnering with Apple and Texas Instruments (TI) to boost US semiconductor production. Applied will deliver American-made chipmaking equipment from its Austin, Texas, site to TI’s US plants, which will make key semiconductors for Apple products. The company is also putting over $200 million into a new plant in Chandler, Arizona, to produce essential parts of semiconductor equipment. This adds to the over $400 million Applied has invested in US manufacturing over the past five years.
Applied Materials’ New Partnership with Apple and Texas Instruments Aims to Enhance Domestic Innovation and Supply Chain
Analyst Take: Applied Materials’ deeper partnership with Apple and Texas Instruments (TI) marks a step forward for localizing the US chip supply chain. The collaboration brings together Applied’s manufacturing strengths, Apple’s $600 billion American Manufacturing Program, and TI’s production capacity to make domestic chipmaking more resilient. This effort is part of a broader push to expand equipment, wafer production, and fabrication, backed by commitments from multiple US suppliers in Apple’s program.
In addition, this demonstrates Applied Materials’ strategic vision in strengthening the U.S. semiconductor supply chain and driving innovation, partly to ensure a more resilient ecosystem and enhance the nation’s technological capabilities. By working closely with Apple and Texas Instruments, Applied Materials is not only securing high-value, long-term partnerships but also aligning with companies critical to advanced chip design and manufacturing leadership.
These collaborations enable joint R&D efforts in next-generation process technologies, packaging innovations, and equipment capabilities that can be rapidly commercialized in domestic fabs. Strategically, such partnerships also position Applied Materials to play a pivotal role in the U.S. government’s goal to enhance the domestic semiconductor supply chain, increasing its influence in shaping national semiconductor policy while potentially positioning the firm in a better position in upcoming tariffs from the 232 Section Investigation.
Strengthening US Semiconductor Equipment Production
Applied’s Austin location, its largest manufacturing and logistics hub, supplies TI’s US plants with advanced chipmaking tools. With over 5,000 employees and a network of more than 500 suppliers, the site combines in-house and commercial parts to build systems for AI and next-gen chips. The $200 million Chandler facility will further grow Applied’s US presence, producing semiconductor equipment parts and potentially adding 200 jobs in manufacturing, R&D, and services over five years. Together, these sites strengthen Applied’s ability to meet the rising needs of US fabs and solidify its spot as a major semiconductor equipment maker.
Apple’s $600 Billion Push for US Manufacturing
Apple’s expanded $600 billion US investment over four years involves ten major suppliers across every stage of chipmaking. Partners like Applied Materials, Texas Instruments, GlobalWafers America, and TSMC plan to produce over 19 billion chips for Apple in 2025. The program covers wafer production, fabrication, advanced packaging, and key component manufacturing. By building a complete US chip supply chain, Apple hopes to cut import dependence and reduce risks from potential tariffs. This strategy strengthens its long-term competitiveness while anchoring more high-value manufacturing in the US.
Expanding TI’s Role in Apple’s Supply Chain
TI will add more tools at its Lehi, Utah, site and build a new fab in Sherman, Texas. These facilities will use advanced 300mm wafers from GlobalWafers America to produce critical analog and embedded processing chips for Apple devices sold in the US and worldwide. Keeping this production domestic cuts down on logistics challenges, tightens quality control, and creates a steadier production flow. It also gives Apple a wider range of chip sources while deepening its ties with US-based suppliers. The result is a stronger, more scalable manufacturing base for Apple’s current and future products.
Building a Distributed, Resilient Manufacturing Network
The partnership’s investments span Texas, Utah, and Arizona, forming a geographically spread-out network of advanced chipmaking capabilities. This setup reduces operational risk, supports local jobs, and boosts regional economies. The network adds redundancy and strengthens supply chain security by linking equipment production, wafer manufacturing, and chip fabrication within these hubs. This distributed approach puts the US in a stronger position to compete globally in advanced chip manufacturing.
What to Watch:
- Execution timelines for Applied’s Arizona facility and integration into the broader supply chain.
- The ramp-up of TI’s new Sherman fab and its alignment with Apple’s production targets.
- Impact of potential 100% semiconductor import tariffs on the competitive positioning of US-made chips.
- The effectiveness of Apple’s partnerships in meeting the goal of producing over 19 billion chips domestically in 2025.
See the complete press release on Applied Materials’ partnership with Apple and Texas Instruments to strengthen US chip manufacturing on the Applied Materials website.
Disclosure: Futurum is a research and advisory firm that engages or has engaged in research, analysis, and advisory services with many technology companies, including those mentioned in this article. The author does not hold any equity positions with any company mentioned in this article.
Analysis and opinions expressed herein are specific to the analyst individually and data and other information that might have been provided for validation, not those of Futurum as a whole.
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Author Information
Ray Wang is the Research Director for Semiconductors, Supply Chain, and Emerging Technology at Futurum. His coverage focuses on the global semiconductor industry and frontier technologies. He also advises clients on global compute distribution, deployment, and supply chain. In addition to his main coverage and expertise, Wang also specializes in global technology policy, supply chain dynamics, and U.S.-China relations.
He has been quoted or interviewed regularly by leading media outlets across the globe, including CNBC, CNN, MarketWatch, Nikkei Asia, South China Morning Post, Business Insider, Science, Al Jazeera, Fast Company, and TaiwanPlus.
Prior to joining Futurum, Wang worked as an independent semiconductor and technology analyst, advising technology firms and institutional investors on industry development, regulations, and geopolitics. He also held positions at leading consulting firms and think tanks in Washington, D.C., including DGA–Albright Stonebridge Group, the Center for Strategic and International Studies (CSIS), and the Carnegie Endowment for International Peace.
