Tim Cook says Apple will use chips built in the US at the Arizona factory

Tim Cook says Apple will use chips built in the US at the Arizona factory

apples CEO Tim Cook confirmed that Apple will buy US-made microchips at an event in Arizona on Tuesday, where President Joe Biden also spoke.

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 largest 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.”

“Apple had to buy all the advanced chips from overseas, now they’re going to bring more of their supply chain home,” Biden said. “It could be a game-changer.”

Apple’s CEO Tim Cook looks on during US President Joe Biden’s visit to TSMC AZ’s first Fab (Semiconductor Fabrication Plant) in P1A (Phase 1A), in Phoenix, Arizona, December 6, 2022.

Jonathan Ernst | Reuters

TSMC currently does most of its manufacturing in Taiwan, which has raised questions from US 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 US 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 US 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 US annual demand, according to the National Economic Council.

The US 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.

Read More

Restaurant Operator: It’s OK to Raise Prices

The fear of alienating customers may be keeping independent restaurants from increasing prices.

As they struggle to balance the need to drive sales, to maintain a high quality of service and to mind their margins, price increases may be the only thing that gives them a fighting chance.

Nomie Hamid, founder and CEO of digital food hall company Virtual X Kitchen, noted in an interview with PYMNTS’ Karen Webster as part of our SMB TV series, which is available Thursday nights at 10 pm and is presented in partnership with PayPal, that many small restaurants are underestimating their ability to raise prices.

“I have been to numerous mom-and-pop restaurants, and I love going to them and supporting them, and when I look at their pricing, I am just amazed at how inexpensive it is,” Hamid said. “But then I see that they’re working on very extreme skeletal shifts, where they have only two or three people working … where they could use other bodies. But why aren’t the other bodies there?”

He added that the “fear factor” of losing customers is keeping them from implementing the price increases they need to give them room within the budget to keep the restaurant staffed. Hamid shared that, in his own business, it was his employees who recommended raising prices, and the benefits were significant.

Jordan Boesch, CEO of restaurant team management platform 7shifts, agreed in the same conversation that staffing needs to be the top priority, adding that soliciting regular feedback from employees is key to keeping everything on the right track.

“Focus on fixing your foundation, and then continue to build the next story in your house,” Boesch said.

Why It Matters

Independents may be worried about how raising prices would affect their customers’ relationships with the restaurant, but the impact of staffing issues on diner loyalty could take its own toll.

Research from the 2022 edition of PYMNTS’ Restaurant Readiness Index, which drew from a survey of more than 500 managers of quick-service restaurants (QSRs) and full-service restaurants (FSRs) across the country, found that about one in three restaurants reported that their level of service had decreased as a result of staffing issues. Additionally, 29% said that they had not been able to open as many tables as they could, which translated to missed sales opportunities.

Yet, despite these challenges, many restaurants have been absorbing much of the inflation with which they are faced. Data from the US Bureau of Labor Statistics (BLS) Consumer Price Index for All Urban Consumers (CPI-U) found that, while food prices were up 11.2% year over year in September, restaurants’ menu prices only increased 8.5%.

What a Flex

One of the ways that restaurants can handle their labor challenges, in addition to raising menu prices, is by looking for alternative work models.

Boesch said one of workers’ top priorities right now is flexibility, opening up new possibilities for employment.

“We are seeing people working multiple jobs in other industries and taking up gig work elsewhere as well, so it’s not just full-time and part-time work,” Boesch said. “There’s full-time, part-time and almost a third category, which is flex/gig work.”

He added that this latter category is “such an important aspect of the future,” noting that 7shifts’ network can help match qualified workers to restaurants for these kinds of shifts.

He explained that this kind of staffing is more complicated than, say, finding an available Uber driver, given that different restaurants require different training and skill sets, such that more factors go into which gig or flex worker is right for a given shift. Consequently, he said that “to be successful,” the restaurant industry needs to view this kind of labor model as “a matching opportunity.”

Keeping It in the Family

On the flip side, Hamid has seen value in just the opposite kind of work, investing in employees over a long period of time and building connections with them.

He noted that Virtual X Kitchen is next to the campus of The University of Maryland, College Park. As such, in addition to the full-time staff who have worked at the company “for a very long time,” Hamid becomes a mentor to the high school and college students who work part time.

In turn, these relationships yield long-term value for the company. Hamid stated that during busy periods, such as during the holiday season, former employees often step in to help.

“Anybody who has worked for us and [then moved onto] … other things and what not, has always said, ‘If you ever need help, call me,’” Hamid said. “So, I actually call them all the time.”

He explained that he’ll pay them extra, let them know the details of the shift, and if they are around, they will often come.

And the strongest incentive drawing

Read More

Telling Americans to ‘eat better’ doesn’t work. We must make healthier food | Mark Bitman

Diet-related chronic disease is the perennial number one killer in the United States, responsible for more deaths than Covid-19 even at the pandemic’s peak. Yet we cannot manage to define this as a “crisis”. In fact, our response is lame: for decades we’ve been telling people to “eat better”, a strategy that hasn’t worked, and never will.

It cannot, as long as the majority of calories we produce are unhealthy. It is the availability of and access to the types of food that determine our diets, and those, in turn, are factors of agricultural policy. For a healthy population, we must mandate or at least incentivize growing real food for nutrition, not cheap meat and corn and soya beans for junk food.

As omnivores, humans have choices, but most choices available to Americans are bad ones. Literally: 60% of the calories in the food supply are in the form of ultra-processed foods (UPFs, or junk food), which are the primary cause of diet-related diseases. That means almost no one can make a “good” choice every time, and many of us can barely make good choices ever.

And it’s not enough to say “eat plant-based”, because most junk food is actually made from plants; the future of food, especially when you add environmental factors, is plant-centric but minimally processed – plants in close to their natural form, in diets that resemble those eaten traditionally by almost everyone in the world until the 20th century. To make that happen, we must address the functioning of the entire food system.

Government mandates around public health, environmental protection and even literacy can yield desirable results: laws or regulations around seat belts, tobacco, light bulbs, recycling, public education, have all improved public welfare. Yet no such efforts have been made in diet, where the mantra of “behavior change” stands in for good policy.

Junk food and meat are both damaging, but must be considered separately: The case for reducing the consumption of junk food rests in part on the fact that UPFs dominate the calorie supply of industrialized nations, and that diet-related diseases (diabetes, heart disease, a dozen cancers) kill around 600,000 Americans per year. (By contrast, at current rates, Covid-19 will kill 100,000 people in the US next year.) Increasingly, studies show that it isn’t simply “sugar” or “inflammation” or “saturated fat” that causes these diseases, but rather a still-to-be-determined combination of factors inherent in UPFs.

We can reduce the consumption of junk food quickly with better labeling laws, taxes on the most aggressive offenders (especially sugar-sweetened beverages) and limits on selling junk food on government properties and to minors. All of these are being explored in various municipalities in the US and even countries abroad.

While eating meat itself isn’t necessarily unhealthy, producing 10 billion animals per year – in the US alone – for consumption has devastating effects on our health and environment. Negative effects abound: astronomical land and resource use, greenhouse gas generation, antibiotic exposure and resistance and the environmental damage and carcinogenic impact of factory farms themselves. Unprocessed food from the plant kingdom is less expensive, less damaging and in countless ways healthier than industrially produced meat.

Although some are in favor of outlawing meat, it’s important to move beyond a fetishization of “animal protein” as critical to human health (it is not), and to acknowledge that meat consumption in industrial nations must be reduced. We can begin doing this by making production less damaging (Senator Cory Booker’s recent Industrial Agriculture Accountability Act would do this), which would reduce both yield and consumption.

Good moves here include restricting the barely regulated use of antibiotics in animal production; reducing monopolistic practices and supporting small farms, as well as local and regional production and consumption; limiting the (currently almost unregulated) emissions produced by factory farms; and defining and penalizing the kind of animal cruelty accepted as “routine” in factory farms.

Of course, meat production would also be curbed by encouraging the growing and consumption of what the US department of agriculture calls (without irony) “specialty products” – fruits and vegetables. The more land that produces other crops than corn and soya beans (mostly used for producing UPFs and animal feed), the less meat and junk we’ll eat. This could be accomplished first by emphasizing subsidies to encourage the growing and sale of real foods, and by making sure that those food programs receiving federal dollars promote truly plant-forward eating.

Rectifying the gross historic injustices in the US land distribution, which has historically been disadvantaged or shut out farmers of color, women and queer farmers, and encouraging new farmers to grow good food well, is also a critical step.

None of this is, as critics argue, a return to more primitive methods of farming, but a recognition that a blend of modern

Read More