Apple Evaluates Diversified Chip Manufacturing, Engages Intel and Samsung
Apple is assessing its long-term strategy of relying solely on TSMC for chip manufacturing and has initiated preliminary discussions with Intel and Samsung Electronics to explore new sources for advanced process chip manufacturing. However, no actual orders have been placed yet.
Due to tight advanced process capacity and surging AI demand, Apple CEO Tim Cook stated that the shortage of chips for iPhone and Mac has limited the company's growth, putting pressure on the supply of products such as Mac mini, Mac Studio, and iPhone 17 Pro.
Apple is accelerating its efforts to diversify supply chain risks, shifting funding from a single reliance on TSMC to potential multi-supplier arrangements, benefiting Intel and Samsung's foundry businesses while putting pressure on TSMC's short-term market share.
Source: Public Information
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Apple has fully relied on TSMC for chip manufacturing since the A-series chips in 2014. The current engagement with Intel and Samsung continues its long-term strategy of supply chain diversification. Previously, Apple sourced some OLED screens and memory chips from Samsung. This exploration into advanced processes (especially 2nm/3nm) is a recent move to address the computational bottlenecks of the AI era.
In terms of capital strategy, Apple is locking in potential capacity through initial contacts while evaluating Intel's U.S. factories and Samsung's Texas wafer fabs. The strategic motive is to diversify geopolitical and capacity risks and provide more flexible supply chain support for end-side AI (such as Apple Intelligence), avoiding growth constraints from a single supplier.
Similar to how Apple gradually introduced Samsung OLEDs between 2018-2020 to reduce reliance on LG displays, or how Intel previously competed for AMD/NVIDIA foundry orders, the global advanced process market is in the early stages of transitioning from TSMC's near-monopoly to multi-supplier competition. If Intel and Samsung secure orders, it will significantly enhance their foundry competitiveness.
Essentially, this is a restructuring of the industry chain: the tight supply of advanced processes forces major end-users to diversify their foundry sources. The mechanism is that AI-driven computational demand far exceeds the capacity of a single manufacturer, shifting pricing power from TSMC's sole supply to multi-supplier competition, accelerating the concentration of industry capital towards foundries like Intel and Samsung that possess advanced process capabilities.
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The stronger a single supplier is, the earlier risk diversification is initiated; reliance has always been the biggest invisible ceiling on growth. The more explosive the AI demand, the more strategic the process capacity becomes; whoever controls the advanced nodes controls the pricing power. As Apple begins to engage with Intel and Samsung, the era of TSMC's monopoly is already counting down, and diversification is always an inevitable choice for long-term survival.