Apple is reportedly reviewing Samsung Electronics and Intel as new partners to expand U.S. production of core chips used in the iPhone, iPad and Mac.
According to Bloomberg on the 5th (local time), Apple visited an advanced chip plant that Samsung Electronics is building in Texas. It also held early-stage talks on using Intel's foundry (contract manufacturing) services.
However, there have been no cases that have led to actual orders so far. Talks with both Intel and Samsung Electronics remain preliminary, and there are said to be internal concerns at Apple about using manufacturing processes other than TSMC's.
For the past 10-plus years, Apple has had its self-designed system-on-chip (SoC) produced by TSMC. The latest chips used in the iPhone and Mac are made using the 3-nanometer (nm, one-billionth of a meter) process, one of the most advanced nodes. Backed by stable technology and large-scale production capacity, TSMC has established itself as Apple's key supply chain partner.
But with chip supply volatility persisting, Apple also needs to diversify its supply chain. A surge in investment in artificial intelligence (AI) data centers has sharply increased demand for advanced chips, and demand for high-performance Macs capable of running AI models on-device was stronger than expected.
Previously, former Apple Chief Executive Officer (CEO) Tim Cook also said in a recent earnings release that chip shortages are constraining the expansion of iPhone and Mac sales. Cook explained, "Supply chain flexibility is lower than usual."
If Apple teams up with Intel, Intel under CEO Pat Gelsinger has made the expansion of its foundry business for external customers a core turnaround strategy. Securing Apple as a customer could bolster confidence in Intel's foundry business and help attract other clients.
Samsung Electronics likewise could gain significant opportunities from the possibility of working with Apple. Samsung is already the No. 2 player in the foundry market after TSMC, but it has struggled to narrow the gap with TSMC in leading-edge process competition. For Samsung, which competes with Apple in the smartphone market, taking on Apple's chip production itself could be a symbolic achievement.
Meanwhile, Bloomberg said geopolitical risks are also behind Apple's push to add U.S.-based production partners. Apple has preferred a strategy of securing multiple supply chains for key components and sees the concentration of chip production in Taiwan as a long-term risk factor. Because China regards Taiwan as its territory, tensions across the Taiwan Strait could translate into supply chain instability, the reasoning goes.