Apple's New U.S. Chip Factory to Produce AI Servers With High-End M5 Chips
Apple's chip factory planned for Houston, Texas will manufacture AI servers that are equipped with high-end M5 chips, Apple analyst Ming-Chi Kuo said today.
Apple is working with Foxconn to open a 250,000 square foot server manufacturing facility in Houston in 2026, with the hardware produced at the location set to be used for AI. While Apple did not provide any insight into the servers that it will be making, Kuo says that the servers will be equipped with TSMC's high-end M5 chips, which are set to enter mass production as soon as the second half of 2025.
Foxconn already has a facility in Houston, and it bought additional land for new projects last year. Servers will be produced at existing facilities starting in the second half of 2025, with assembly expanding to the new facility when it launches in 2026.
Back in December, Kuo said that Apple would accelerate its Private Cloud Compute infrastructure for Apple Intelligence when the mass production of M5 Pro, M5 Max, and M5 Ultra chips started. Kuo expects the M5 Pro and M5 Max to enter mass production this year, with M5 Ultra chips to be mass produced starting in 2026.
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