(Bloomberg) — Apple Inc. has been lobbying the U.S. government on tax breaks to support domestic chip production, suggesting the iPhone maker is keen to move more of its supply chain to the U.S.In second- and third-quarter disclosure reports, the company said it lobbied officials from the Treasury Department, Congress and the White House on tax topics including “issues related to tax credits for domestic semiconductor production.”Since releasing its first custom processor in 2010, chips have become a major performance differentiator for Apple. The company designs some of these components in house, but outsources production to Taiwan Semiconductor Manufacturing Co. Many other parts for Apple devices are made in China. That has exposed the company to import tariffs and other risks from a trade war between the U.S. and China. Taiwan, where TSMC operates, has also become an increasing focus of geopolitical tension between China and the U.S.Apple’s recent lobbying coincides with a push by the company and its partners to move some production away from China and even back to the U.S. in a few cases. There’s also a broader effort by the U.S. semiconductor industry to get government support for increased domestic production.Apple’s U.S. lobbying efforts are now mostly led by company veteran Tim Powderly, who was promoted around the time Cynthia Hogan, Apple’s prior top U.S. lobbyist, left to join former vice president Joe Biden’s campaign. An Apple spokesman declined to comment.Read more: Chip Industry Wants $50 Billion to Keep Manufacturing in U.SEarlier this year, TSMC said it would build a $12 billion chip plant in Arizona, and the company has been lobbying officials there for tax breaks.In 2013, Apple started making a low-volume Mac Pro computer in the U.S. Last year, it started using the same plant in Texas to conduct final assembly for a new version. That decision came after the company was granted breaks on tariffs.Apple also sources components from several chipmakers that build some of their products in the U.S., including Broadcom Inc. and Texas Instruments Inc. Apple also has started using Qualcomm Inc. again for iPhone modems, and the San Diego, California-based chipmaker builds some products domestically via production partner Global Foundries.Intel Corp., the current maker of the Mac’s main processors, builds some of its chips in the U.S. However, when Apple moves to its own Mac chips next month, that will mean shifting production of that component to Taiwan.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
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Moody’s Investors Service, (“Moody’s”) assigned first time ratings to Valkyr Purchaser, LLC (dba Veracode), including a B2 Corporate Family Rating (CFR), B2-PD Probability of Default Rating (PDR) and B2 ratings to the proposed $300 million senior secured first lien term loan and $30 million revolving credit facility. Net proceeds from the first lien term loan will be used by the company to repay existing debt of Veracode. The ratings are subject to the transaction closing as proposed and receipt and review of the final documentation.
Apple (NASDAQ: AAPL) recently unveiled the iPhone 12, and bullish analysts expect plenty of consumers to buy the new 5G devices. Wedbush analyst Daniel Ives declared the iPhone 12 would mark “the most significant product cycle for Cook & Co. since iPhone 6 in 2014” — Apple’s best-selling iPhone ever. Buying shares of Apple, which generated over half its revenue from iPhones in the first nine months of 2020, is the easiest way to profit from that upgrade cycle.
Yahoo Finance’s Emily McCormick joins Akiko Fujita to break down Intel’s third-quarter earnings report.