Apple M5, Made in USA with TSMC N3P Node, Will Power AI Servers in 2026 | Cpu hardware list and functions | Hardware definition and examples | Computer hardware parts | Turtles AI

Apple, in partnership with Foxconn, will start a 250,000-square-foot plant in Houston in 2026 to produce servers for AI, using future M5 processors. These chips, based on TSMC’s N3P node, will go into production between 2025 and 2026.

Key points:

• Houston plant: Apple and Foxconn will build an AI server factory by 2026.
• M5 processors: They will use TSMC’s N3P node and SOIC-MH packaging for optimized performance.
• Apple Intelligence PCC: The servers will be for the company’s private cloud platform.
• Billion-dollar investment: Apple will invest $500 billion in the United States over the next four years.

Apple, in partnership with manufacturing giant Foxconn, announced the creation of a new industrial facility in Houston, Texas, intended for the production of servers for AI. This 250,000-square-foot facility will be operational starting in 2026. The design of this new facility is closely tied to the evolution of the Apple Intelligence Private Cloud Compute (PCC) platform, an initiative to strengthen the company’s cloud infrastructure. The servers to be assembled within the factory will use future M5 series processors, made with TSMC technology on N3P manufacturing node, currently in the prototyping phase. The timeline for the start of mass production of the M5 chips was outlined by analyst Ming-Chi Kuo: the M5 Pro and M5 Max models are expected to enter production in the second half of 2025, while the most powerful variant, M5 Ultra, will be produced in volume in 2026. Apple’s new generation of processors will adopt an architecture optimized for server applications by using SOIC-MH packaging technology, an advanced horizontal molding system that improves thermal efficiency and production yields. Foxconn, which already has facilities in Houston, has purchased additional land in the region to expand its manufacturing capabilities. Production will begin at the existing sites in the second half of 2025 and will expand to the new factory once completed. Apple has officially announced a $500 billion investment in the United States over the next four years, with the Texas project representing a strategic piece of this initiative. Servers developed at the Houston facility will be intended to support Apple’s AI infrastructure, providing greater computational efficiency and reduced power consumption, thanks to the advanced capabilities of M5 processors. Although initially planned only for devices such as Macs and iPad Pros, these SoCs will then also find use in Apple’s data centers, consolidating the company’s strategy in cloud computing. Current forecasts indicate that mass production of the M5 could start as early as the second half of 2025, with possible slippage to 2026, a timeline that coincides with the completion of the new factory. The adoption of TSMC’s N3P node provides increased performance and efficiency over previous generations, enabling faster handling of AI workloads.

This development marks another step in Apple’s expansion of manufacturing capacity in the server sector, with a focus on integrating proprietary hardware into enterprise infrastructure.