Apple in Talks with Intel, Samsung on Chips

Seeking supply chain resilience amid chip shortages, Apple explores US manufacturing talks with Intel and Samsung, while weighing dependence on TSMC.

Apple has held preliminary discussions with Intel and Samsung Electronics on manufacturing key processors for its devices in the United States (US), as it explores ways to diversify its chip supply chain, according to a report by Bloomberg.

The talks are described as early-stage, with no agreements or orders confirmed so far. Sources cited in the report indicated that it remains unclear whether Apple will proceed with either company, particularly given its reliance on Taiwan Semiconductor Manufacturing Company’s manufacturing ecosystem, which currently produces the majority of its advanced chips.

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The discussions come amid ongoing supply constraints affecting the availability of high-end processors used in devices such as iPhones and Macs. During a recent earnings call, Apple chief executive Tim Cook said limited chip supply had restricted the company’s growth, citing reduced supply chain flexibility. He added that it could take several months for supply and demand to stabilise, with system-on-chip components identified as a key bottleneck.

Separately, Apple executives have visited a Samsung fabrication facility under development in Texas, signalling interest in potential US-based production. Samsung, which previously manufactured processors for Apple for more than a decade, continues to supply various components but remains behind TSMC in the contract chip manufacturing segment.

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For Intel, securing Apple as a customer would represent a significant development as part of a broader strategy led by chief executive Lip-Bu Tan to expand its foundry business. Such a partnership could also carry strategic implications, including alignment with US policy efforts to strengthen domestic semiconductor manufacturing.

Apple’s efforts reflect longstanding concerns over dependence on a single geography for chip production. The company has already supported TSMC’s expansion in the United States, including its Arizona facility, which is expected to supply a portion of Apple’s chip requirements, though not at the scale required for its global operations.

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Shubha Mitra
Shubha Mitra
Shubha Mitra is an Assistant Editor at EFY, keenly interested in policies and developments shaping the electronics business.

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