Breaking: Apple in Early Talks to Diversify Chip Manufacturing from TSMC
Apple has initiated preliminary discussions with Intel and is evaluating Samsung Electronics' production facilities as part of a broader strategy to reduce its dependence on TSMC, according to a report by Bloomberg.
The tech giant is seeking to diversify the manufacturing of its core device chips—the A-series and M-series processors—amid growing geopolitical risks and supply chain vulnerabilities tied to TSMC's dominance in Taiwan.
Expert Commentary
“This is a tectonic shift for Apple’s supply chain,” said Dr. Robert Chen, a semiconductor analyst at TechInsights. “TSMC has been the sole foundry for Apple’s advanced chips for years, but the Taiwan-China tension and potential disruption are forcing a rethink.”
Former Intel executive Angela Martinez added, “Intel’s new foundry services division is desperate for anchor customers. Apple would be a massive win, but Intel must prove it can match TSMC’s yield and performance.”
Background: Why Apple Is Moving Away from TSMC
TSMC manufactures over 90% of Apple’s custom chips, including the latest A17 Pro and M3 series. The concentration poses a significant risk given the fragility of cross-strait relations and the possibility of a Chinese blockade.
Apple has previously diversified its supply chain for displays and memory, but chips remain the most critical and complex component. The company already uses some Samsung parts in iPhones, but never its logic-chip foundries.
The move comes as the U.S. government pushes for domestic chip production through the CHIPS Act. Intel has received billions in subsidies to build advanced fabs in Arizona and Ohio.
What This Means for Apple and the Industry
If Apple proceeds with Intel or Samsung, it could lead to a multi-source chip strategy similar to how it uses both Samsung and LG for iPhone displays. This would reduce single-point-of-failure risk and potentially lower costs.
However, challenges remain. Samsung’s advanced fabrication node (3nm) has lower yields than TSMC, and Intel’s foundry business is still ramping up. Apple is known for demanding perfection, and any shift could delay product launches.
For the semiconductor industry, Apple’s move would validate Intel’s foundry ambitions and shake TSMC’s near-monopoly on high-end chips. Rivals like Qualcomm and AMD may follow suit, accelerating a global reordering of chip supply chains.
This is a developing story. Check back for updates.