LOS ANGELES – Apple has held exploratory discussions about using Intel and Samsung Electronics to produce the main processors for its devices, a move that would offer a secondary option beyond longtime partner Taiwan Semiconductor Manufacturing Co (TSMC).
The iPhone and iPad maker has had early-stage talks with Intel about enlisting the company’s chipmaking services, according to people familiar with the deliberations. Meanwhile, Apple executives have made visits to a Samsung plant under development in Texas that will also make advanced chips.
Neither effort has resulted in any orders so far, and the work with both suppliers remains preliminary, according to the people. Apple has concerns about using non-TSMC technology and may not ultimately move forward with another partner, the people added.
Spokespeople for Apple, Intel, Samsung and TSMC declined to comment.
For more than a decade, Apple has designed the main processors that power its devices and relied on TSMC to build them using the most advanced production processes in Taiwan.
But not even Apple, one of the largest purchasers of silicon, is immune to supply chain disruptions. Recent shortages have been driven by the massive build-out of AI data centres and higher-than-anticipated demand for Macs suitable for running AI models locally. That, in part, highlights the need for Apple to consider additional suppliers.
Apple executives discussed the problem during the company’s quarterly earnings call last week, saying that a lack of chips for the iPhone and Mac was constraining growth. “We have less flexibility in the supply chain than we normally would,” chief executive officer Tim Cook said.
But finding backup suppliers is no easy feat. Intel and Samsung can’t reliably offer the type of production and scale that’s turned TSMC into the dominant made-to-order chip manufacturer – and one of Apple’s most critical supply-chain partners.
For Intel, finding external customers for chip production is a key piece of a comeback plan under CEO Tan Lip-Bu. The company remains in the early stages of trying to line up clients for its so-called foundry business after past false starts. Landing Apple as a customer would represent a massive win for Mr Tan and potentially help attract additional new business.
Samsung has had more success in this area, but it too has struggled to keep pace with TSMC and remains a distant second in the foundry market. Samsung would benefit greatly from an endorsement by Apple – a company it competes with in smartphones and other sectors.
Discussions with both companies started before the latest shortages took hold. Beyond helping shore up supply, there’s another potential benefit to working with Intel. A partnership could help Apple’s relationship with the Trump administration, some executives believe. The White House brokered an unconventional deal to invest in Intel in 2025 and views the chipmaker as a national champion. BLOOMBERG
