Apple seeks supply chain flexibility by exploring Intel and Samsung for future chip production
Preliminary discussions with US rivals aim to mitigate geopolitical risks and reduce dependence on a single supplier, though no orders have been placed.
Apple is reportedly engaging in preliminary discussions with Intel and Samsung to manufacture key device processors, a strategic move designed to reduce its heavy reliance on Taiwan Semiconductor Manufacturing Company (TSMC). While the talks remain in their early stages and no formal orders have been placed, the iPhone maker is actively evaluating these alternatives to improve supply chain flexibility and mitigate the risks associated with geopolitical instability involving Taiwan.
The company's current strategy involves a dual approach, maintaining its primary partnership with TSMC while building domestic capacity. Apple is currently producing some chips at its facility in Phoenix, Arizona, with plans to manufacture 100 million system-on-chips (SoCs) stateside by 2026. However, this output represents only a small fraction of its total volume, as the firm shipped 247.4 million iPhones in 2025 alone.
Leadership at the company has been vocal about the dangers of single-supplier dependence. Former CEO Tim Cook highlighted this specific issue during a recent earnings call, noting that the current arrangement leaves Apple with less flexibility than usual. This concern was compounded by recent chip shortages where manufacturing resources were diverted towards artificial intelligence products, further straining the global supply chain.
In terms of specific technology, Apple has confirmed that TSMC will retain exclusive rights to use its 2nm process for the upcoming iPhone 18 lineup. Consequently, any chips produced by Intel or Samsung would be reserved for devices launching in 2027 or later. Reports suggest Apple is considering Intel's upcoming 14A process, which is a 1.4nm class technology, for potential use in non-Pro iPhones as far out as 2028.
The Cupertino-based company also recently visited a Samsung chip plant currently under development in Texas, indicating a serious interest in the South Korean giant's capabilities. Samsung has recently claimed to be the first to release a 2nm mobile chip, the Exynos 2600, though both Intel and Samsung have historically faced challenges with yield rates and overheating issues during transitions to advanced nodes.
Despite the strategic imperative to diversify, Apple remains cautious about moving away from TSMC technology. The company is aware that both Intel and Samsung have struggled to match TSMC's technological lead over the last decade. While a partnership would be a significant milestone for Intel, which recently saw the US government take an $8.9 billion stake under the Trump administration, Apple will likely proceed with extreme caution to ensure reliability.
