Apple was reported on Tuesday to be holding preliminary talks with Intel and Samsung, exploring the establishment of a backup chip supply source outside TSMC. Although TSMC’s position will be difficult to shake in the short term, geopolitical risk and strategic pressure to diversify the supply chain are pushing Apple to adjust its chip supply sources.
Supply chain is tight! Apple is seeking chip options outside TSMC for the first time
Bloomberg reported that Apple is looking to collaborate with Intel and Samsung to produce key device processors, citing sources familiar with the matter. Apple has already held early discussions with Intel regarding foundry services and has also dispatched executives to visit Samsung’s advanced chip plant still under construction in Texas. At present, neither side has reached any orders; the talks remain at a very preliminary exploratory stage, and whether a partnership will ultimately be reached remains unknown.
The direct reason behind the search for backup suppliers is the recent severe chip shortage. The large-scale expansion of AI data centers has increased demand for advanced-process chips, while Mac sales—capable of running AI models locally—have also been higher than expected. The dual pressure has tightened the supply of Apple’s core processors.
Apple CEO Tim Cook also acknowledged during the company’s last quarterly earnings call that chip shortages for iPhone and Mac are constraining the company’s growth: “We have less flexibility in the supply chain than we normally do.” He estimated that it will take a few more months for supply and demand to reach balance.
(Apple earnings: Strong demand for iPhone and Mac; Cook admits supply-chain concerns)
Intel and Samsung still have gaps in strength; TSMC is hard to replace in the short term
Even though reports suggest Apple is seeking a backup, industry consensus is that Intel and Samsung are unlikely to dislodge TSMC’s dominant position in the near term. The report said these two companies “cannot reliably provide production capacity and scale at the same yield levels as TSMC.” TSMC, backed by more than a decade of deep collaboration and the most advanced process technologies, remains Apple’s most critical supply-chain partner to date.
For Intel, winning external foundry customers is one of the core elements of CEO Lip-Bu Tan’s turnaround plan; the company is working to shake off the shadow of repeated losses in its past foundry business. If it lands an Apple order, it would be a major symbol of Intel’s return to glory. On the other hand, Intel is a national-level strategic manufacturer heavily supported by the Trump administration; partnering with it could also help bring Apple closer to the White House.
Meanwhile, Samsung—ranked as the global number two in the foundry market—could also gain a positive effect on its brand and business through Apple’s adoption.
(Who benefits most from TSMC’s CoWoS spillover? Intel EMIB yield reportedly at 90%; advanced packaging is the key to a comeback)
Cross-strait geopolitical politics is the biggest hidden risk; TSMC’s order share may be diluted long term
That said, long-term risks cannot be ignored. In the past, Apple’s supply-chain strategy had multiple suppliers for any major component, and TSMC’s long-standing exclusive supply of Apple’s core chips is an exception. As early as 2022, Cook warned: “Having 60% of capacity concentrated in any single place may not be a strategic arrangement.”
He has long listed Taiwan concentration risk as a hidden issue that must be addressed, especially given the geopolitical context in which China has never given up on the use of force to liberate Taiwan. Currently, TSMC is actively expanding its facilities in Phoenix, Arizona, in the United States. By 2026, it is expected to be able to supply Apple with 100 million chips, but that would be only a very small portion of Apple’s total annual shipments—far from enough to diversify risk.
Looking ahead, Apple may not “replace” TSMC, but its share in Apple’s orders is likely to decline gradually as Intel and Samsung are added over time. For TSMC, the loss would not only be market share, but also the longstanding advantage in bargaining power.
This article Apple seeks Intel and Samsung to manufacture chips; TSMC’s exclusive position faces challenges first appeared on Chain News ABMedia.
