Index / Supply Chains / Chip
Apple’s A20 Pro is about 1 cm across. Making it takes quartz from North Carolina, silicon from Germany, wafers and chemicals from Japan, a machine built in the Netherlands, memory from Korea and a factory in Taiwan, before the phone is assembled in India and flown to Spain. 7 branches meet in 1 place.
Summary
About $66 of silicon in a €1,469 phone
Inside the fab
A chip is built up in layers, and each layer is made by the same loop of machines. A leading-edge chip needs 50 to 100 mask layers and more than 1,000 steps, so a wafer goes round dozens of times over about 3 to 4 months. Almost every machine in the loop comes from the US, Japan or the Netherlands.
| Step | What the machine does | Main makers | Share |
|---|---|---|---|
| Deposit | Lays down a film of metal or insulator a few atoms to a few hundred atoms thick | Applied Materials, Lam Research (US); Tokyo Electron (Japan); ASM (Netherlands) | The most spread-out step |
| Coat | Spins a thin layer of photoresist onto the wafer | Tokyo Electron (Japan) | About 90%; almost 100% for EUV |
| Expose | Projects the layer’s pattern onto the resist with EUV or deep-ultraviolet light | ASML (Netherlands) | The only EUV maker |
| Develop | Washes away the resist where the light did or did not fall, leaving a stencil | Tokyo Electron (Japan) | Same machine as coating |
| Etch | Uses plasma to cut into the layer wherever the stencil leaves it bare | Lam Research (US), Tokyo Electron (Japan), Applied Materials (US) | Top 3 over 90%; Lam about 35 to 39% |
| Clean | Strips the leftover resist and washes off residue | SCREEN, Tokyo Electron (Japan); Lam Research (US) | Not published |
| Implant | Fires ions into the silicon to change how it conducts | Applied Materials, Axcelis (US) | About 63% and 21% of units sold in 2024 |
| Polish | Grinds the surface flat so the next layer starts level | Applied Materials (US), Ebara (Japan) | Applied about 70% |
| Inspect | Measures and checks every layer for defects | KLA (US) | About 56% overall; over 85% in optical wafer inspection |
Legs
Every leg of the chain, from the design file to the shop. Distances are straight lines between the points on the globe†. Costs are for the thing that travels, not the trip.
| Leg | From | To | What | How | Packed | Distance or time | Cost |
|---|---|---|---|---|---|---|---|
| 1 | Cupertino, Cambridge | Hsinchu | Layout file | Network | Data | Instant | About $725m to design |
| 2 | Spruce Pine | Japan | Quartz | Road, then sea | Bulk bags* | Several weeks* | From $5,000 a tonne |
| 3 | Germany, US, Japan | Wafer makers | Polysilicon | Sea or air* | Sealed cleanroom bags | Not published | $5.84 a kg (solar) |
| 4 | Japan | Hsinchu | Wafers | Air | FOSB, 25 wafers | 1 to 2 days* | Not published |
| 5 | Veldhoven | Hsinchu | EUV machine | Several 747s | About 250 crates | About 9,500 km | $183m to $220m |
| 6 | Tokyo | Hsinchu | Photoresist | Air* | Bottles, kept cool | About 2,150 km | About $1,800 a gallon |
| 7 | Pyeongtaek | Chiayi | Memory | Air* | Not published | About 1,630 km | $145.90 for 12 GB |
| 8 | Hsinchu | Chiayi | Finished wafers | Road* | Sealed pods | About 155 km | $30,000 a wafer |
| 9 | Chiayi | Chennai | Packaged chips | Air | Trays or reels* | About 4,400 km | Not published |
| 10 | Chennai | Europe | Boxed phones | Air | Boxes on pallets | About 8,900 km | About $4.88 a kg |
| 11 | European hub | A Coruña | Boxed phones | Road* | Boxes | Not published | Not published |
Parts
Chokepoints
| Step | Who | If it stops |
|---|---|---|
| Crucible quartz | 2 mines in Spruce Pine, North Carolina | About 70 to 90% of high-purity quartz. Both shut when Hurricane Helene hit in September 2024, and restarted within weeks |
| Polysilicon | Hemlock, Wacker, Tokuyama | About half the world’s electronic-grade supply between the top 3 |
| Wafers | Shin-Etsu, SUMCO and 3 others | The top 5 hold about 82 to 85% of 300 mm capacity |
| EUV machines | ASML, with Zeiss optics and a TRUMPF laser | The only maker in the world. No EUV machine, no 2 nm chip |
| Photoresist | 4 Japanese firms | About 87 to 91% of the market |
| 2 nm fabs | TSMC, in Taiwan | The only source of the A20 Pro |
| Memory | Samsung, with SK hynix and Micron | Samsung holds about 60 to 70% of Apple’s orders |
Paperwork
| Rule | Set by | Where | What it does |
|---|---|---|---|
| EUV export licence | Netherlands | Veldhoven | EUV machines have not been sold to China since 2019 |
| Bill of lading or air waybill | Carrier | Every shipment | Records what is on board and who can claim it |
| EU import duty | European Union | Entry to Spain | 0% on smartphones, under the Information Technology Agreement |
| VAT | Spain | At the till | 21%: about €255 of the €1,469 price† |
| CE marking | European Union | Before sale | The phone meets EU safety and radio rules |
| Common charger rule | European Union | Before sale | Phones sold in the EU must charge by USB-C, since 28 December 2024 |
Risk
| Where | Risk | What happens |
|---|---|---|
| North Carolina | Weather | Helene showed that 1 storm can stop most of the world’s crucible quartz |
| Netherlands | Capacity | ASML plans to ship more than 60 EUV machines in 2026, and every new fab needs some |
| Taiwan | Concentration | Every A20 Pro is made and packaged on 1 island |
| Korea | Memory | Demand for AI servers has tightened the supply of phone memory |
Gaps
Sources