Apple considering Intel and Samsung for US chip production, report claims — consumer electronics giant looks to diversify supply chain amid chip shortages

Source: Tom’s Hardware

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Apple’s talks with Intel and Samsung

Apple is reportedly in early‑stage discussions with Intel and Samsung about producing processors in the United States. According to Bloomberg, Cupertino has held multiple conversations with Intel’s “Team Blue,” while senior Apple executives have visited a Samsung plant under development—likely the Taylor, Texas fab that is slated to start risk production this year (Tom’s Hardware).

No orders have been placed yet. The talks come amid concerns about relying on non‑TSMC technology for Apple’s chips, a practice that would mark a shift from the company’s long‑standing partnership that began with the A8 chip in the iPhone 6.

Supply‑chain constraints

Apple’s CEO Tim Cook has acknowledged that the company is constrained by TSMC’s supply of advanced chips (Tom’s Hardware).

Nvidia CEO Jensen Huang recently said Nvidia has dethroned Apple as TSMC’s largest customer, suggesting Apple may face higher chip prices if it continues to depend on TSMC.

Apple has also been considering Intel’s 18A process for future M‑series chips (Tom’s Hardware), a move motivated by geopolitical risks to the global supply chain.

Potential impact of a diversified foundry strategy

• Intel: Gaining a major customer would bolster Intel’s fledgling foundry business, which struggled after an earlier attempt to become a foundry partner in 2011 (Tom’s Hardware).
• Samsung: Strengthening its foundry business would help Samsung close the gap with TSMC, which currently holds the dominant market position.
• Apple: Reducing reliance on a single supplier could mitigate risks associated with supply shortages and geopolitical tensions. Even with TSMC’s Arizona plant ramping up to deliver an estimated 100 million chips this year, that volume represents only a fraction of Apple’s total demand, most of which still comes from Taiwan.

Tim Cook has long warned about over‑reliance on a single source. In a 2022 all‑hands meeting he said, “Regardless of what you may feel or think, 60 % coming out of anywhere is probably not a strategic position.” The AI‑driven chip shortage has amplified these concerns, with Cook noting during the latest earnings call that “the primary constraint is the availability of the advanced nodes our SoCs are produced on, not memory,” and that it may take several months to achieve supply‑demand balance.

Timeline considerations

Even if Apple were to finalize agreements with Intel and Samsung today, ramping up production would take time. Consumers are unlikely to notice any effects for several months, and full diversification could span a couple of years.