Editor’s Note
Apple’s long-standing exclusive partnership with TSMC for chip manufacturing may be evolving. As reported, the tech giant is reportedly exploring a second supplier for some processors, a potential strategic shift driven by the competitive demands of the AI era.
Apple has been completely reliant on TSMC as its chip supplier since 2014, but this 12-year-old strategy may soon change. According to a report by the Wall Street Journal, Apple is considering outsourcing the production of some lower-tier processor lines to another manufacturer. This is possibly due to TSMC’s increasing reliance on companies like Nvidia, which are utilizing its capabilities for artificial intelligence chips.
No specific candidate has been named, but earlier speculation pointed towards Intel. Analyst Jeff Pu of GF Securities estimates that Intel could begin supplying some processors for the base model iPhone starting in 2028, specifically chips from the A21 or A22 series. This would signal Intel’s return to the supply chain.
But Mac and iPad could also join this race. According to renowned analyst Ming-Chi Kuo, Apple estimates that Intel could produce the lowest-tier models of the M-series chips using the new Intel 18A technology by 2027. In this scenario, it would only be about production, not chip design.
Expanding suppliers could help Apple diversify its supply chain at a time when TSMC is facing heavy demand from AI companies. Similarly, Samsung and SK Hynix are also striving for this due to rising RAM prices for Apple. Nevertheless, Apple announced record sales of $143.8 billion last quarter and expects 13-16% growth in the next quarter.
CEO Tim Cook acknowledged the modest impact of rising memory prices on profits but emphasized that Apple is finding ways to resolve the situation.