Amid rising pressure on its supply chain, Apple Inc. is exploring options beyond its long-time chip manufacturing partner Taiwan Semiconductor Manufacturing Co.. The company has held early discussions with Intel Corp. and Samsung Electronics Co. to potentially produce device processors in the US.
The talks remain at a preliminary stage, with no confirmed orders so far. Apple executives have engaged with Intel on its foundry services and also visited a Samsung chip plant under development in Texas. However, concerns remain about relying on non-TSMC technology, and Apple may not move forward with alternative partners.
For over a decade, Apple has designed its own system-on-chip (SoC) processors and depended on TSMC for manufacturing, using advanced nodes such as 3-nanometer technology in its latest iPhones and Macs.
Recent supply challenges have prompted Apple to consider diversification. Shortages have been driven by rapid expansion in AI data centers and strong demand for Macs capable of running AI models. These constraints were highlighted during the company’s recent earnings call.
“We have less flexibility in the supply chain than we normally would,” said CEO Tim Cook.
Still, shifting suppliers is complex. Intel and Samsung currently lack the scale and consistency that have made TSMC a dominant player. For Intel, securing Apple as a customer would support its foundry ambitions under CEO Lip-Bu Tan. Samsung, though more established in chip manufacturing, still trails TSMC and would benefit from Apple’s endorsement despite competing in devices.
Apple has historically worked with both companies. Intel supplied Mac processors from 2006 to 2020, while Samsung previously manufactured iPhone chips. Discussions with both began before the latest shortages.
A partnership with Intel could also strengthen ties with the White House, which views the chipmaker as a national priority. Meanwhile, Samsung is already supplying some peripheral components for Apple devices.
Apple typically maintains multiple suppliers for key components to ensure pricing flexibility and reduce risk. It is also expanding TSMC’s US presence, with plans to source 100 million chips from Arizona by 2026. However, this will cover only a small portion of demand.
Cook has long warned against over-reliance on a single geography. “regardless of what you may feel and think, 60% coming out of anywhere is probably not a strategic position,” he said earlier.
Currently, processor shortages remain the primary constraint. “The primary constraint is the availability of the advanced nodes our SoCs are produced on, not memory,” Cook added. He noted it may take several months to restore supply-demand balance.
Supply issues have also impacted products like Mac mini, Mac Studio, and the iPhone 17 Pro line, while efforts are ongoing to prevent disruption across other devices such as AirPods and Apple Watch.
(This story has not been edited by The Mainstream staff and is auto-generated from a syndicated feed.)
Also read: Viksit Workforce for a Viksit Bharat
Do Follow: The Mainstream LinkedIn | The Mainstream Facebook | The Mainstream Youtube | The Mainstream Twitter
About us:
The Mainstream is a premier platform delivering the latest updates and informed perspectives across the technology business and cyber landscape. Built on research-driven, thought leadership and original intellectual property, The Mainstream also curates summits & conferences that convene decision makers to explore how technology reshapes industries and leadership. With a growing presence in India and globally across the Middle East, Africa, ASEAN, the USA, the UK and Australia, The Mainstream carries a vision to bring the latest happenings and insights to 8.2 billion people and to place technology at the centre of conversation for leaders navigating the future.
