Apple Considering Using Intel and Samsung as Backup Chipmakers in US

Apple has reportedly held “exploratory” discussions with Intel and Samsung, leveraging their manufacturing power to make main chipsets for its devices in the US.

According to the latest from Bloomberg, Apple is seeking to use the two companies to diversify its supply chain. The iPhone maker is said to be in early discussions with Intel about making on-device processors. Similarly, Apple is said to have visited Samsung’s plant in Texas, which is being built. During that visit, the two companies discussed the possibility of using advanced chips for Apple’s devices.

These discussions are still very early, and Apple has not signed a contract nor made an order with either Intel or Samsung.

Apple is said to be considering all options, as the company has concerns about using technology not made by its longtime supply chain partner, Taiwan Semiconductor Manufacturing Company (TSMC). Currently, TSMC provides Apple’s A-series and M-series chips. The relationship has been a long-running one, with TSMC powering iPhones and Macs.

Through partnerships with Intel and Samsung, Apple would reduce its reliance on TSMC. The processor manufacturer has become one of the most advanced chipmakers. Upon the advent of the M-series chips, TSMC was the only fabricator advanced enough to produce them for Apple. Over the years, Intel and Samsung have struggled to keep pace with TSMC, meaning the manufacturer has remained ahead in processor technology.

If a partnership with Intel or Samsung were inked, Apple could find a way to get around some of the recent shortages affecting technology companies. The need for chipsets to power AI data centers has ballooned demand and driven up component prices.

Apple has recently seen increased demand for its Mac mini and Mac Studio, largely because of the devices’ ability to help run local AI models. Recently, Apple CEO Tim Cook said ‌Mac mini‌ and ‌Mac Studio‌ “may take several months to reach supply demand balance.”