In an internal meeting, Apple (AAPL  ) CEO Tim Cook mentioned that the company is looking to expand its supply of chips and will be a buyer out of the new Taiwan Semiconductor (TSM  ) plant in Arizona starting in 2024, when the new factory is expected to come online. He also added that the company could start sourcing from Europe.

Following the news, Apple shares were basically unchanged, while TSMC shares were up 3%. Prior to this news, TSMC had been rallying due to strength in the semiconductor sector and the news that Berkshire Hathaway (BRK.A  ) and Warren Buffett had taken a large stake in the company. Of course, Apple is one of the largest holdings in Berkshire's portfolio.

This is the first step in Apple decreasing its reliance on Asian manufacturers for assembly and components. It's also part of TSMC's push to increase production in different facilities all over the world.

For one, this is a natural reaction to the recent semiconductor shortage which crippled the world's supply chain for many months in 2021. And, it's also due to the increasing uncertainty of whether or not China will invade Taiwan which would have many devastating effects, including a similar impact on supply chains. Currently, about 60% of the world's processors come from Taiwan.

As a result, there is a push to re-shore supply chains and diversify production away from Asia. Already, TSMC is reportedly looking to build a second facility in the U.S.

The re-shoring of chip production in the U.S. is a strategic objective that reduces China's leverage over Taiwan and the rest of the world, leads to more resilient supply chains, and can also help meet the inexhaustible demand for semiconductors. Intel (INTC  ) is also planning a new facility in Arizona as it doubles down on its fabrication business. The U.S. has also been limiting China's access to chips when it comes to AI and machine learning.

This is also part of the CHIPS and Science Act which will be giving out about $50 billion in incentives to help with these companies' relocation. The CHIPS act is pretty bipartisan as it's one area where the moderate wings of both parties are aligned. And, it's expected that foreign policy will continue to be a big part of the Biden Administration's next two years given that many domestic issues will be sidelined with a Republican House.