Last week, Apple hit us with a little bit of a surprise, and introduced the new base-model iPad with an A16 chip. The new iPad wasnt much of a surprise, but the A16 chip certainly was. Rumors had long suggested that we should expect an A17 Pro chip, but that never came to fruition.However, the A16 chip might provide a special perk, one that assures the product can stay around at its $349 price tag in the short term.US-made A16 chipsLast year, Apple chipmaking partner TSMC begun producing 4nm chips in the US, at its new Arizona plant. Yields are lower than theyre achieving in Taiwan, but its certainly a strong start. TSMC began producing A16 chips at the Arizona plant, which seemed like a weird choice at the time, since it wasnt quite clear what product would use them:Apples A16 SoC [] is currently being manufactured at Phase 1 of TSMCs Fab 21 in Arizona in small, but significant, numbers, my sources tell me. Volume will ramp up considerably when the second stage of the Phase 1 fab is completed and production is underway, putting the Arizona project on track to hit its target for production in the first-half of 2025.However, now we know. Apple hadnt been planning for the iPad 11 to support Apple Intelligence, making it a perfect test-bed for these new US manufactured A16 chips. The report even initially stated that volume production would begin in the first half of this year, aligning perfectly with the new iPad 11 launch.While Apple hasnt confirmed whether or not the iPad 11 uses these US-manufactured A16 chips, it seems probable that it is being used to some degree. Otherwise, there wouldnt be a product to put these chips in other than iPhone 15s, which are likely ramping down in production.On top of that, as highlighted by Bloombergs Mark Gurman, using US-made A16 chips in the new iPad would actually be a strategic play. Given the looming threats of tariffs from the Trump administration, Apple could likely get some sort of exemption, since the chip is US-built. This would secure Apples margins on one of its most affordable products, and likely prevent any sort of price hike.Of course, tariff news has been very back-and-forth, and whether or not we see any sort of long-lasting tariffs is still up in air. Nonetheless, it certainly cant hurt Apple to say they (likely) have a product using American-made silicon for the very first time.My favorite Apple accessories on Amazon:Follow Michael:X/Twitter,Bluesky,InstagramAdd 9to5Mac to your Google News feed. FTC: We use income earning auto affiliate links. More.Youre reading 9to5Mac experts who break news about Apple and its surrounding ecosystem, day after day. Be sure to check out our homepage for all the latest news, and follow 9to5Mac on Twitter, Facebook, and LinkedIn to stay in the loop. Dont know where to start? Check out our exclusive stories, reviews, how-tos, and subscribe to our YouTube channel