apple inc AAPL chairman Tim cook allegedly said that the iPhone Manufacturer prepares to source chips from one upcoming factory in Arizona in the United States.

What happened: Cook made the reveal at an internal meeting with tech and retail employees in Germany. reported Bloomberg.

“We’ve already made a decision to buy a plant in Arizona, and that Arizona plant comes on stream in 24, so we’ve got about two years ahead of us, maybe a little less,” Cook reportedly said at the meeting.

Cook said he’s “sure” Apple will source from Europe as well, as Arizona plans to become “more obvious,” according to the report.

See also: The current best semiconductor stocks

Why it matters: The Arizona plant mentioned by Cook is likely operated by an existing chip partner Taiwan Semiconductor Manufacturing Co.Ltd TSMaccording to the report.

TSMC shares jumped 10.6% in after-hours trading on Tuesday Benzinga Pro data.

Apple did not immediately respond to Benzinga’s request for comment, while TSMC Benzinga said it does not comment on individual customers.

Why it matters: Apple currently sources 60% of its processors from TSMC factories in Taiwan. “Regardless of what you feel and think, 60% coming out of nowhere is probably not a strategic position,” Cook reportedly said at the meeting.

TSMC is a beneficiary of the CHIPS and Science Act of 2022, which provides 52.7 billion US dollars direct financial support for building and expanding semiconductor manufacturing facilities in the United States and providing $24 billion in tax incentives.

Price promotion: Apple shares traded 1.2% higher at $150.04 in extended trading after closing 0.05% lower in the regular session.

Continue reading: Warren Buffett’s $4.1 billion stake disclosure drives Apple supplier’s shares up 8%