Apple Holds Early Talks with Intel, Samsung on U.S. Processor Production
Apple has opened early-stage talks with Intel and Samsung to produce its system-on-chip processors at U.S. facilities, though no orders are confirmed and TSMC remains the primary supplier. CEO Tim Cook warned constrained SoC supply is limiting growth, and Apple’s Arizona campus is to deliver 100 million chips.
1. Early-Stage Discussions with Intel and Samsung
Apple has initiated exploratory talks with Intel and Samsung to produce its system-on-chip processors in U.S. fabrication facilities. While no commitments have been made, these discussions mark a potential shift from its longstanding reliance on Taiwan Semiconductor Manufacturing Co. for advanced chip production.
2. Supply Constraints on System-on-Chip
CEO Tim Cook highlighted that constrained supply of advanced processors has limited the company’s device growth, estimating it may take several months to rebalance supply and demand. The search for alternative foundry partners aims to mitigate the bottleneck affecting iPhone and Mac shipments.
3. Strategic and Diplomatic Considerations
Some Apple executives view a partnership with Intel as aligning with U.S. government semiconductor initiatives following a White House investment in Intel last year. Securing domestic production could also address geopolitical risks tied to a single manufacturing geography.
4. Diversification Through Arizona Campus
Separately, Apple’s contribution to TSMC’s Arizona campus is on track to deliver 100 million chips this year, representing a small fraction of total demand but part of its broader effort to diversify manufacturing. Expansion of domestic capacity underscores Apple’s strategy to reduce supply chain concentration.