Apple has reportedly approached both Samsung and Intel about making its “main device chips.” This move aims to lessen the iPhone maker’s heavy dependence on its long-time supplier, TSMC, according to Bloomberg. Apple has had early discussions with Intel and recently visited a Samsung chip plant currently being built in Texas. Sources familiar with the matter say no orders have been placed yet, and talks are still in the preliminary stages.
For the past ten years, Apple has mostly relied on TSMC to produce the processors (system-on-chips, or SoCs) that power its iPhones, iPads, and newer Mac computers. However, Apple reportedly feels uneasy about having only one supplier for any key component. Former CEO Tim Cook highlighted this issue last week during Apple’s earnings call, stating, “we have less flexibility in the supply chain than we normally would.” A global chip shortage, with manufacturing resources shifting towards AI products, has made this problem even worse.
Apple has previously voiced worries about potential supply disruptions if China were to invade Taiwan. TSMC now manufactures some of Apple’s chips at its Phoenix, Arizona, plant. Apple mentioned that 100 million of its SoCs will be built in the US in 2026. However, this would cover only a small fraction of its devices, considering the company shipped 247.4 million iPhones alone in 2023. The rest of its SoCs are made in Taiwan.
Reports indicate that Apple will exclusively use TSMC’s 2nm (N2) process for the A20 and A20 Pro processors in the iPhone 18 lineup. This means any chips built by other manufacturers would likely be for products launching in 2027 or later. The report doesn’t specify which Apple devices might get Intel- or Samsung-made chips. However, Bloomberg noted that “Apple has concerns about using non-TSMC technology and may not ultimately move forward with another partner.”
Currently, both Intel and Samsung trail behind TSMC in processor technology. Apple was reportedly considering Intel’s upcoming 14A process (1.4nm class) technology for non-Pro iPhones in 2028 as a way to diversify its supply chain. Securing Apple as a customer would be a massive boost for Intel, which has faced challenges in improving its fortunes under CEO Lip-Bu Tan. Last year, the US government under Trump invested $8.9 billion in Intel.
Samsung, for its part, recently claimed to be the first with a 2nm mobile chip (the Exynos 2600), ahead of both Intel and TSMC. Despite these claims, both Samsung and Intel have struggled over the past decade to successfully transition to smaller and more efficient chip designs, dealing with issues like overheating and low chip yields.
