The new $12 billion TSMC plant in Arizona will start to produce Apple's 4nm chips starting in 2024, with the iPhone maker being key to pushing the production forward.
But Apple and other companies wanted to be able to source 4nm parts from the United States, with TSMC relenting.
TSMC previously said it would make 20,000 wafers per month at the Arizona facility, although production may increase from those original plans, the people said. Apple will use about a third of the output as production gets underway.
Apple's most current chips are all produced on a 5nm process and the move to a new 4nm process could allow for improved performance, reduced power draw, and better thermal management. The chips will likely be used in iPhones, iPads, and Macs while Apple's future products could also make use of the technology.
Apple and other major tech companies rely on TSMC for their chipmaking needs, and the change means they'll be able to get more of their processors from the US. Apple Chief Executive Officer Tim Cook has previously told employees that his company plans to source chips from the Arizona plant.