Apple Considers Working with Intel and Samsung to Produce Key Device Chips

On May 5th, according to Bloomberg, Apple is in preliminary discussions with Intel and Samsung regarding the production of its main device chips. Concurrently, Apple executives have also visited an advanced chip factory under construction by Samsung in Texas.

Sources close to the matter have revealed to the media that the discussions are in a very early stage and have not yet resulted in any orders. Apple has reservations about using non-TSMC technology and may ultimately decide not to collaborate with other partners. Spokespersons from Apple, Intel, Samsung, and TSMC have not commented.

Affected by this news, Intel's stock price soared by 12.92% that day.

Why Intel and Samsung

Historically, Apple has preferred to have at least two suppliers for each core component to maintain initiative in bargaining and supply assurance—the diversification of screen suppliers is a case in point.

As for Intel, the two companies have had a collaborative history spanning over a decade. Intel provided processors for Macs from 2006 to 2020 until Apple transitioned to its own chips. For current CEO Pat Gelsinger, attracting Apple as a contract manufacturing customer would represent a significant breakthrough in reviving Intel's foundry business.

Furthermore, some Apple executives believe that cooperation with Intel also has political considerations—this move may help improve Apple's relationship with the Trump administration.The White House facilitated investment in Intel last year and viewed it as a "national champion" for the U.S. semiconductor industry.

On Samsung's part, Apple executives have visited the advanced chip factory under construction in Texas. Samsung was previously a contract manufacturing partner for Apple's iPhone chips and is now producing more peripheral components for products like the iPhone. However, Samsung still lags behind TSMC in the foundry market, ranking second.

Chip Shortage Becomes a Growth Bottleneck

During last week's earnings call for the second quarter of the fiscal year 2026, Apple rarely acknowledged supply chain pressures publicly.

CEO Tim Cook stated: "Our flexibility in the supply chain is lower than usual." He further indicated that, the current main bottleneck is not memory, but the supply at advanced process nodes—"this is the node our SoC relies on."

Cook also stated: "I believe it will take several months to restore the balance of supply and demand."

The chip shortage has affected the iPhone 17 Pro series and has put pressure on shipments of Mac mini and Mac Studio. Apple's operations team is working hard to prevent the shortage from spreading to other product lines such as AirPods and Apple Watch.

The factors driving this round of shortages are twofold: one is the large-scale expansion of AI data centers that have occupied advanced manufacturing capacity; the other is the unexpected demand for Macs capable of running AI models locally.

Apple's current mainstream chip uses TSMC's 3-nanometer process and is highly concentrated in manufacturing in Taiwan, China.