Apple’s chip supply chain still runs through Taiwan, but the AI boom is making that dependence harder to ignore.
The tech giant has held early discussions with Intel and evaluated Samsung’s Texas facilities as possible US-based manufacturing options for future iPhone, iPad, and Mac processors. The talks remain preliminary and have not led to orders, but they show how AI-driven chip demands are pushing Apple to add flexibility to one of its most important supply chains.
Apple explores alternatives to longtime partner
According to Bloomberg, Apple has held exploratory discussions with Intel and evaluated Samsung’s chipmaking facilities in Texas as it considers expanding its manufacturing base beyond Taiwan Semiconductor Manufacturing Co.
Reuters also noted that executives have visited Samsung’s under-development plant and held preliminary talks with Intel about using its foundry services.
The discussions remain in the early stages and have not resulted in orders. Apple is also concerned about using non-TSMC technology, including whether alternative manufacturers can match the scale and reliability of its current supplier.
“We have less flexibility in the supply chain than we normally would,” Chief Executive Officer Tim Cook told Bloomberg.
AI demand strains advanced chip supply
For more than a decade, Apple has designed the systems-on-a-chip that power its devices and relied on Taiwan Semiconductor Manufacturing Co. to build them using advanced production processes.
Reuters reported that Apple warned of ongoing chip supply constraints when it reported results last month, and that iPhone sales were held back by the limited availability of advanced processors.
Bloomberg also said that recent shortages have been driven by the build-out of AI data centers and stronger-than-expected demand for Macs suited to running AI models locally.
“The primary constraint is the availability of the advanced nodes our SoCs are produced on, not memory,” Cook said during the earnings call, Bloomberg reported.
Supply chain resilience becomes strategic
Apple’s possible shift highlights the risks of relying heavily on a single geography for critical chip production. TSMC remains Apple’s most important manufacturing partner, but production concentrated in Taiwan carries geopolitical exposure.
Reuters emphasized that the iPhone 17 family’s chips are made using a variant of the same TSMC manufacturing technology used for many leading AI chips.
9to5Mac also noted that Apple’s reliance on TSMC carries added weight given geopolitical tensions surrounding Taiwan and its relationship with China.
Intel could benefit from securing Apple as a foundry customer, while Samsung could strengthen its position as an alternative supplier. even as both trail the current market leader in advanced manufacturing, Bloomberg stated.
Apple has not committed to Intel or Samsung, and Taiwan Semiconductor Manufacturing Co. remains central to its chip strategy. But the talks show how demand for AI, geopolitical risk, and US manufacturing priorities are changing the calculus for one of the world’s most complex supply chains.
Source: https://www.eweek.com/news/apple-intel-samsung-us-chip-production-ai-crunch/
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