Dhruv Bhutani / Android Authority
TL;DR
- Apple is considering partnering with Samsung and Intel to manufacture chips in the US.
- It is likely to rely on these partners if TSMC cannot meet its demand due to the new US fab’s limited supply and increasing pressure from AI companies.
- The talks, however, are far from being finalized.
Taiwan Semiconductor Manufacturing Company, fondly known as TSMC, is currently responsible for nearly three-fourths of global chip fabrication. But as the recent explosion in demand for chips underpinning the AI framework clogs TSMS’s capacity, mobile phone makers, as well as chip companies, are looking to alternative foundries to rely on. Qualcomm is reportedly already leaning on Samsung for a part of its flagship Snapdragon 8 Elite Gen 6 chips. And Apple is now exploring a similar option, especially as the Trump administration stresses the need to increase the United States’ manufacturing footprint.
According to a recent Bloomberg (paywalled) report, Apple is reportedly considering working with other chipmakers to meet its chip demand if TSMC cannot satisfy its requirements. The company has reportedly held preliminary talks with Samsung and Intel to meet its requirements for the “main” chipsets for its devices. Bloomberg does not specify which devices it is referring to, but Apple executives have reportedly visited Samsung’s upcoming fabrication facility in Taylor, Texas. The $17 billion plant is expected to be functional by the end of 2026.
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The report clarifies that the efforts have yet to materialize into something concrete. And even if it does, Samsung and Intel may not be able to fully replace TSMC, whether in terms of finesse or capacity, especially when manufacturing products designed for Apple.
At a recent earnings call, Apple’s outgoing CEO, Tim Cook, acknowledged concerns about the supply chain crunch, noting that chipmakers are toiling to meet demand for AI data centers, which is why exploring more suppliers makes sense. Tim Cook also cautioned that, unlike other competitors, which have been starved for RAM, Apple’s bigger concern is to ensure the availability of advanced nodes for its sophisticated A- and M-series chips, which are designed in-house.
But in addition to allaying concerns about chip shortages, Apple’s brewing partnership with Intel could place it in a better spot in Trump’s eyes. Intel was braving troubled waters last year until the US government, under the Trump administration, stepped in with a relief package of roughly $9 billion. The President subsequently bragged about helping the company recover its share value, which in turn helped the US government’s holding grow.
Meanwhile, Samsung is already part of Apple’s supplier ecosystem, providing components such as displays and memory modules. Apple has already confirmed it is working with Samsung to “launch an innovative new technology for making chips” in the US.
Even though Samsung is in a better position to supply chips to Apple, the latter prefers having multiple suppliers so it can have more leverage while negotiating deals. It also gives Apple a geographical advantage if political tensions between Taiwan and mainland China disrupt chip supplies.
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