Apple has sourced its chips exclusively from TSMC since 2016; however, that exclusivity might be coming to an end soon.
According to The Wall Street Journal, Apple is exploring whether some of its low-end processors could be manufactured by companies other than TSMC. The report also notes that TSMC is doing more business with Nvidia and other AI leaders, which is driving chip prices for the tech giant.
The report did not mention any candidates, but previous rumours have suggested that Intel could start supplying some lower-end chips to Apple starting in 2027 or 2028.
Now, a few months ago, MacRumors noted that GF Securities analyst Jeff Pu said that he expected Intel to reach a deal with Apple to supply chips for at least one non-Pro iPhone model starting in 2028. Based on that, Intel could supply Apple with at least some A21 or A22 chips for future iPhone models if the partnership goes through.
If Apple does return to Intel, it could also involve some lower-end Mac and iPad chips. According to MacRumors, Tianfeng Securities analyst Ming-Chi Kuo said that he expected Intel to begin shipping Apple’s lowest-end M-series chip for select Mac and iPad models as early as mid-2027, utilizing Intel’s 18A process — the same used in Intel’s newest Panther Lake chips.
There is also no indication that Intel would play a role in designing the iPhone chips, with its involvement expected to be limited to fabrication only.
Interestingly, this shift back to Intel comes after Apple transitioned its Mac computers off Intel chips back in 2020. Since then, Mac computers have used Apple Silicon, which shook up the laptop market by offering excellent performance while reducing power draw.
The addition of Intel would help Apple diversify its supply chain, which comes at an important time for the California-based tech giant, as Nvidia has surpassed Apple as TSMC’s largest customer. However, Apple isn’t just being hit on the chip front, as The Wall Street Journal notes both Samsung and SK Hynix have both gained enough leverage from the AI server boom to demand Apple pay more for RAM chips. On an earnings call last week, CEO Tim Cook said that rising memory chips had “minimal impact” on Apple’s gross margin last quarter, but that there will be a “bit more of an impact” on the company’s gross margin this current quarter.
Source: The Wall Street Journal via MacRumors
