Apple explores diversify its chip manufacturing as TSMC capacity strains industry

In a move to mitigate supply chain risks and meet growing demand, Apple is testing Intel and Samsung as alternative partners for chip production, signalling a shift in its manufacturing strategy amid TSMC’s capacity constraints.

Apple is moving to broaden its chipmaking options as pressure on TSMC’s advanced capacity spills beyond the AI supply chain, with industry reports suggesting the company is testing Intel and Samsung as alternative manufacturing partners for some processors. According to DIGITIMES Asia, that wider scramble comes as buyers from AMD to Tesla and Google look for backup foundry capacity while TSMC remains stretched by AI demand. Macworld reported that Apple chief executive Tim Cook has pointed to advanced-node availability as the main bottleneck, saying the shortage is about the chips’ manufacturing process rather than memory.

The most detailed reports suggest any shift would be selective rather than a wholesale break with TSMC. Tom’s Guide said analyst Ming-Chi Kuo believes Apple and Intel have already begun initial production work on chips for iPhones, iPads and some Macs, with roughly four-fifths of that output aimed at iPhones and the parts intended for lower-end or legacy devices. Tom’s Hardware and TechSpot both reported that Apple is examining Intel’s 18A and 18AP processes for an entry-level M-series chip, with a possible production ramp in 2027 if Intel can keep improving yields and complete the required design kit milestones. Even then, TSMC would still make the bulk of Apple’s premium silicon, including the highest-end iPhone and Mac chips.

Samsung is also back in the frame as Apple weighs a more geographically diverse supply chain. Tom’s Hardware said Apple executives have visited Samsung’s under-development Taylor, Texas, fab, while TechSpot noted the logic is to reduce dependence on a single foundry for less performance-sensitive components. That would fit a broader industry pattern: customers are increasingly treating supply-chain resilience as strategically important, even if TSMC remains far ahead on scale and process maturity. For Intel, a credible Apple order would be more than symbolic; it would be a sign that its foundry turnaround is gaining traction, though the harder test would still be proving it can deliver consistent yields and competitive economics at volume.

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Source: Fuse Wire Services