Bloomberg reports that Apple is exploring early-stage talks with Intel and evaluating Samsung Electronics as it looks to diversify its core device chip production away from TSMC. Here are the details.
Negotiations are still at an early stage
according to BloombergApple is looking to reduce its reliance on TSMC by exploring alternative manufacturing partners.
This includes initial discussions with Intel and visits to the Samsung Electronics plant in Texas, where it is expected to produce advanced chips.
The news comes on a heel internal reconstruction it brought together Apple’s hardware engineering and hardware technology teams under a single organization led by Johny Srougee, now the company’s Chief Hardware Officer.
As part of the reorganization, it became a hardware group reported divided into five main areas, one of which is Silicon, and is led by Sri Santhanam, an 18-year Apple veteran.
Back to report Bloomberg says that Apple’s main challenges in its diversification efforts are based on manufacturing scale and consistency, as “Intel and Samsung cannot reliably offer the type and scale of manufacturing that makes TSMC the dominant custom chipmaker — and one of Apple’s most important supply chain partners.”
From the report:
For more than a decade, Apple has developed the core processors known as systems-on-chips that power its devices, relying on TSMC to build them using cutting-edge manufacturing processes in Taiwan. The latest iPhones and Macs use what’s known as a 3-nanometer manufacturing node.
But Apple, one of the largest buyers of silicon, is not immune to such supply chain disruptions. Recent setbacks are due to the massive build-out of AI data centers and higher-than-expected demand for Macs suitable for running local AI models. This, in part, highlights the need for Apple to consider additional suppliers.
Bloomberg also notes that while these conversations began before the recent component crisis caused by the AI boom, the issue has become more pressing in recent months, with Apple itself acknowledging the limited flexibility of its current supply chain last week. earnings call.
As for Intel and Samsung Electronics, both would benefit significantly from having Apple as a customer.
For Intel, it would be a major endorsement of the still-nascent foundry under CEO Lip-Bu Tan, with the bonus of rekindling a partnership that began in 2006 and lasted until Apple moved to its own Apple Silicon chips.
For Samsung Electronics, this would be a significant boost to its position in the advanced chip market, as it still lags TSMC despite a more established presence in foundry services.
Apple’s reliance on TSMC carries additional weight given the broader geopolitical tensions surrounding relations with Taiwan and China.
Offshoring even a portion of that production would not only help spread that risk, but also align with Apple’s broader efforts. brings advanced manufacturing Return to the United States.
Given the US government, this dynamic may be particularly relevant if the company contracts with Intel now owns a share of stock at the chip maker.
said that Bloomberg says that discussions with Intel and Samsung Electronics remain at an early stage without any orders, and that “Apple is concerned about using non-TSMC technology and may not move forward with another partner as a result.”
To read Bloombergfull report, follow this link.
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