Reports indicate that Apple has initiated preliminary discussions with Samsung and Intel regarding the production of “primary device chips,” aiming to lessen its reliance on TSMC, Bloomberg has reported. The iPhone manufacturer is said to have engaged in initial talks with Intel and recently toured a Samsung chip facility currently under construction in Texas. Sources familiar with the situation note that no orders have been finalized and negotiations remain in the early stages.
For the past ten years, Apple has predominantly depended on TSMC to manufacture the system-on-chips (SoCs) that drive its iPhones, iPads, and recently, its Macs. However, Apple reportedly feels uneasy about depending on a single supplier for any component. Former CEO Tim Cook highlighted this vulnerability during the company’s earnings call last week, stating, “we have less flexibility in the supply chain than we normally would.” This issue has been exacerbated by a global chip shortage, with manufacturing capacity being redirected toward AI-related products.
Apple has previously voiced concerns about potential supply chain disruptions in the event of a Chinese invasion of Taiwan. While TSMC now produces some of Apple’s chips at its facility in Phoenix, Arizona, and the company has committed to manufacturing 100 million SoCs domestically in 2026, this output will only satisfy a fraction of demand. The company shipped 247.4 million iPhones alone in 2025. The remainder of its SoCs continue to be manufactured in Taiwan.
Apple is expected to exclusively utilize TSMC’s 2nm (N2) process for the A20 and A20 Pro processors, which will power the iPhone 18 series. Consequently, any chips produced by alternative manufacturers would likely be intended for devices launching in 2027 or later. It remains unclear which specific Apple products might receive Intel- or Samsung-made chips. However, Bloomberg notes that “Apple has concerns about using non-TSMC technology and may not ultimately move forward with another partner.”
Currently, both Intel and Samsung trail TSMC in processor technology. Apple was said to be considering Intel’s upcoming 14A process (1.4nm class) technology for 2028 non-Pro iPhones to help diversify its supply chain. Securing Apple as a customer would be a significant boost for Intel, which has faced challenges in revitalizing its business under CEO Lip-Bu Tan. Last year, the US government under Trump took an $8.9 billion stake in Intel.
Samsung, meanwhile, recently claimed it was first with a 2nm mobile chip (the Exynos 2600), ahead of Intel and TSMC. However, both Samsung and Intel have struggled over the last decade to transition to smaller and more efficient chip designs, battling problems like overheating and low chip yields.