Tim Cook says Apple will use chips built in the U.S. at Arizona factory
Apple CEO Tim Cook spoke at an event in Arizona on Tuesday, ahead of remarks expected by President Joe Biden later in the day, where Cook confirmed Apple will buy chips built in the U.S.
Cook said Apple would buy processors made in a new Arizona factory, according to a video from the event.
“And now, thanks to the hard work of so many people, these chips can be proudly stamped Made in America,” Cook said. “This is an incredibly significant moment.”
The chip factories will be owned and operated by Taiwan Semiconductor Manufacturing Company, the biggest foundry company with over half of the global market share. TSMC produces the most advanced processors, including the chips in the latest iPhones, iPads and Macs.
The plants will be capable of manufacturing the 4-nanometer and 3-nanometer chips that are used for advanced processors such as Apple’s A-series and M-series and Nvidia‘s graphics processors.
“Today is only the beginning,” Cook said. “Today we’re combining TSMC’s expertise with the unrivaled ingenuity of American workers. We are investing in a stronger brighter future, we are planting our seed in the Arizona desert. And at Apple, we are proud to help nurture its growth.”
TSMC currently does most of its manufacturing in Taiwan, which has raised questions from U.S. and European lawmakers about securing supply in the potential event of a Chinese invasion or other regional issues. Chip companies such as Nvidia and Apple design their own chips but outsource the manufacturing to companies like TSMC and Samsung Foundry.
The factories in Arizona will be partially subsidized by the U.S. government. Earlier this year, Biden signed the CHIPS and Science Act into law, which includes billions of dollars in incentives for companies that build chip manufacturing capabilities on U.S. soil.
TSMC said on Tuesday that it would spend $40 billion on the two Arizona plants. The first plant in Phoenix is expected to produce chips by 2024. The second plant will open in 2026, according to the Biden administration.
The TSMC plants will produce 600,000 wafers per year when fully operational, which is enough to meet U.S. annual demand, according to the National Economic Council.
The U.S. plants will be a small fraction of TSMC’s total capacity, which produced 12 million wafers in 2020.
AMD CEO Lisa Su said in remarks on Tuesday that AMD plans to be a significant user of the TSMC Arizona fabs.
American chip company Intel has also said it wants to compete for Apple’s business and is building chip factories in Arizona and Ohio, which are expected to be partially subsidized by the CHIPS act.
Last year, Intel said it would act as a foundry for other companies, although its manufacturing abilities currently lag behind TSMC’s. That makes Intel less attractive for the fastest chips.
Mark Zuckerberg, chief executive officer of Meta Platforms Inc., wears a pair of Meta Ray-Ban Display AI glasses during the Meta Connect event in Menlo Park, California, US, on Wednesday, Sept. 17, 2025.
David Paul Morris | Bloomberg | Getty Images
Meta continues to sink money into the metaverse, anchored by virtual reality and augmented reality technologies.
The company reported third-quarter earnings on Wednesday and said that the Reality Labs division recorded an operating loss of $4.4 billion while generating $470 million in sales during the period.
Wall Street was expecting Reality Labs to post an operating loss of $5.1 billion on $316 million in revenue.
The Reality Labs unit is responsible for developing the company’s Quest-branded family of VR headsets and Ray-Ban and Oakley AI smart glasses that Meta develops in partnership with eyewear giant EssilorLuxottica.
The company’s Reality Labs division has now recorded over $70 billion in cumulative losses since late 2020, underscoring the high costs of building VR, AR and other consumer hardware.
Meta CEO Mark Zuckerberg in September revealed the $799 Meta Ray-Ban Display glasses, which are the company’s first consumer-ready AI glasses that include a built-in display and an accompanying wristband with neural technology.
EssilorLuxottica said in its most recent earnings report earlier this month that those AI glasses helped lift its sales in the third quarter.
“Clearly there is a lift coming from Ray-Ban Meta wearables as a product category,” EssilorLuxottica CFO Stefano Grassi said during a third-quarter earnings call.
With Meta’s AI glasses becoming a surprise hit, investors have been monitoring for any signs that the company may be shifting its metaverse strategy.
Meta on Monday said that Vishal Shah, who was leading its metaverse initiatives, is now a vice president of AI products in the company’s Superintelligence Labs division that works on AI.
WATCH: Market volatility reflects AI trade anxiety ahead of Mag 7 earnings.
Bill McDermott, chief executive officer of ServiceNow Inc., during the Allen & Co. Media and Technology Conference in Sun Valley, Idaho, US, on Thursday, July 10, 2025.
David Paul Morris | Bloomberg | Getty Images
ServiceNow reported third-quarter results on Wednesday that blew past Wall Street’s estimates, with the company also approving a five-for-one stock split.
Shares rose 4% after the bell.
Here’s how the company did versus LSEG estimates.
- Earnings per share: $4.82 adjusted vs. $4.27 expected
- Revenue: $3.41 billion vs. $3.35 billion expected
Third-quarter subscription revenues, which account for the bulk of the enterprise software company’s sales, totalled $3.3 billion and surpassed a $3.26 billion estimate from StreetAccount. Overall revenues grew 22% from the year-ago period.
ServiceNow bumped up full-year guidance, saying it now expects subscription revenue to range between $12.84 billion and $12.85 billion for the year. Last quarter, the company raised FY guidance to a range of $12.78 billion to $12.80 billion.
Like many software companies, ServiceNow is benefitting from the artificial intelligence transformation that’s forcing more businesses to adopt the tools.
“Every enterprise in every industry is focused on AI as the innovation opportunity of our generation,” wrote CEO Bill McDermott in a release. He called the results the “clearest demonstration” that businesses are relying on ServiceNow for these capabilities.
Finance chief Gina Mastantuono told CNBC that the annual contract value for ServiceNow’s AI business is projected to surpass $500 million this year and on track toward the goal set at its investor day to reach $1 billion by 2026.
“The value AI is going to create in enterprise is like nothing that we’ve seen in a very, very long time,” she said. “We have real customers, it’s not just hype, and we have real values and we’re driving real outcomes for those customers.”
Net income hit $502 million, or $2.40 per share, up from $432 million, or $2.07 per share, during the same quarter in 2024. Current remaining performance obligations reached $11.35 billion.
ServiceNow said its fourth-quarter guidance accounts for ongoing U.S. government uncertainty and the recent shutdown. The company expects $3.42 billion to $3.43 billion in subscription revenues.
“Whenever the government reopens, the administration’s continued focus on cost efficiency and modernization aligns directly with our strengths,” she said, adding that ServiceNow’s U.S. federal business grew more than 30% in the third quarter.
ServiceNow’s board also approved a five-for-one stock split slated for the beginning of December. Mastantuono said the split will make shares accessible to more retail investors.
The stock is down about 13% year to date.
ServiceNow year-to-date stock chart.
Federal Reserve Chair Jerome Powell speaks during a news conference following a meeting of the Federal Open Market Committee at the Federal Reserve on Oct. 29, 2025 in Washington, DC.
Alex Wong | Getty Images
Federal Reserve Chair Jerome Powell said on Wednesday that the artificial intelligence boom is different from the dotcom bubble of the late 1990s.
“This is different in the sense that these companies, the companies that are so highly valued, actually have earnings and stuff like that,” Powell said, during a news conference following the Fed’s two-day policy meeting.
AI investments in data centers and chips are also a major source of economic growth, he said. In the dotcom era, numerous companies raced to big valuations before going bankrupt due to hefty losses.
Powell didn’t name specific vendors, but chipmaker Nvidia has emerged as the world’s most valuable company, surpassing $5 trillion in market cap. The rally has been driven by the company’s graphics processing units, which are at the heart of AI models and workloads.
However, while Nvidia is generating big profits, high-valued startups OpenAI and Anthropic have been burning cash as they develop and expand their services.
OpenAI has racked up $1 trillion in AI deals of late, despite being set to generate only $13 billion in annual revenue. Anthropic, which is at a $7 billion revenue run rate, last week announced an estimated $50 billion cloud partnership with Google.
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