When Apple released the 11th-gen iPad last week, it wasn’t even important enough to get its own press release. Tucked at the end of the iPad Air announcement, Apple spent less than 150 words on the new device, with more than half of them dedicated to the A16 chip.
Since that’s basically all that’s new (other than doubling the starting storage), we were confused as to why Apple chose to update its entry-level iPad for the first time since 2022 and give it a processor that’s only marginally faster than the previous one. Plus, the new model doesn’t have the necessary specs to support Apple Intelligence, so you’d be hard-pressed to see a difference between them.
Why the new chip? According to Mark Gurman’s latest Power On newsletter, the answer might be a simple one. As he explains, the A16 chip is the only one in Apple’s lineup that is manufactured at TSMC’s Arizona plant. That means it’s the only chip made in the U.S. and would be exempt from any tariffs imposed by the Trump administration. That makes sense, as even a small price hike to the $349 iPad could deter a significant number of buyers.
The A16 chip is also used in the iPhone 15, which Apple still sells, and could theoretically end up in the next Apple TV 4K, which currently uses an A15 chip.
It was reported last year that the Arizona plant, which manufactured 4nm chips, would go into full-volume production early in 2025. It’s not clear if the plant will be used for any other chips in the near future. Apple still makes several products with 4nm chips, including the M2 chip in the Vision Pro and the S9 used in the Apple Watch and HomePod.
