Apple Considers Intel and Samsung to Diversify Chip Production, but TSMC Will Remain Central
Apple's intention to diversify its production capacity, breaking away from its exclusive relationship with TSMC, is something that has been discussed multiple times in recent years. However, Bloomberg has recently revisited the issue, suggesting that Apple has initiated exploratory discussions with Intel and assessed the production capabilities of Samsung Electronics in an attempt to reduce its reliance on TSMC.
The information indicates that this is still a preliminary phase, lacking concrete agreements or orders, but it shows that Cupertino is certainly not leaving anything to chance. According to rumors, Apple executives have visited a Samsung facility under construction in Texas, intended for the production of advanced semiconductors (including those for Tesla), while initial talks have also been started with Intel to consider the use of its foundry services.
This move comes in the context of significant pressure on the supply chain. Apple, which has been designing its SoCs internally for over a decade while relying on TSMC for production on advanced processes, is grappling with high demand for chips. Two main factors are at play: the expansion of data centers for artificial intelligence and the increasing demand for devices like Macs capable of running AI models locally. Apple itself has recently indicated limited flexibility in its supply chain, with constraints affecting iPhone sales due to processor availability.
Despite the interest in alternatives, the openness to new suppliers still represents an uncertainty for Apple. While Intel and Samsung are active in the foundry sector, they do not yet offer the same level of reliability, production yield, and large-scale capacity that has made TSMC the global benchmark in contract manufacturing. This presents a significant hurdle, considering that Apple requires high volumes and extremely stringent quality standards for chips destined for iPhones, Macs, and other devices.
The ongoing evaluations coincide with a recent internal reorganization at Apple, which has unified the hardware engineering and hardware technologies teams under the leadership of Johny Srouji, now Chief Hardware Officer. Within the new structure, the Silicon sector represents one of the key areas, entrusted to Sri Santhanam. This organizational evolution suggests greater integration between design and production strategy at a time when control of the chip supply chain is becoming increasingly critical.
Reducing reliance on TSMC would mean for Apple not only mitigating risks related to production capacity but also diversifying geographic exposure, considering the geopolitical tensions involving Taiwan. A potential agreement with Intel could also align with U.S. efforts to bolster domestic semiconductor production, while for Samsung, it would present an opportunity to close the competitive gap with TSMC in the advanced process segment.
Despite the strategic interest, discussions remain in the early stages. At this moment, therefore, there are no indications of an imminent breakthrough: TSMC remains the primary partner, but the search for alternatives highlights a change in the long-term strategy that we are quite sure will eventually materialize.