Apple Evaluates Non-TSMC Chip Suppliers for First Time in 12 Years
Apple is currently evaluating the possibility of shifting part of its low-end processor production away from its long-standing partner, TSMC, to alternative suppliers. This strategic move, if implemented, would break a twelve-year tradition of exclusive cooperation with the Taiwanese semiconductor giant. The decision is driven by significant shifts in the industry landscape, particularly the AI boom, which has propelled NVIDIA to overtake Apple as TSMC’s largest customer, thereby securing a dominant share of advanced process capacity. Additionally, rising prices from memory suppliers like Samsung and SK Hynix are squeezing Apple’s profit margins, further incentivizing supply chain diversification. Analysts suggest that Intel could begin manufacturing chips for non-Pro iPhone models using its 14A process as early as 2028. By diversifying its supply chain, Apple aims to balance costs with capacity security while navigating the rapidly evolving demands of the AI era. This potential shift marks a critical adjustment in Apple’s hardware strategy to mitigate risks associated with supplier dependency and market volatility.
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Apple Evaluates Non-TSMC Chip Suppliers for First Time in 12 Years
Apple is currently evaluating the possibility of shifting part of its low-end processor production away from its long-standing partner, TSMC, to alternative suppliers. This strategic move, if implemented, would break a twelve-year tradition of exclusive cooperation with the Taiwanese semiconductor giant. The decision is driven by significant shifts in the industry landscape, particularly the AI boom, which has propelled NVIDIA to overtake Apple as TSMC’s largest customer, thereby securing a dominant share of advanced process capacity. Additionally, rising prices from memory suppliers like Samsung and SK Hynix are squeezing Apple’s profit margins, further incentivizing supply chain diversification. Analysts suggest that Intel could begin manufacturing chips for non-Pro iPhone models using its 14A process as early as 2028. By diversifying its supply chain, Apple aims to balance costs with capacity security while navigating the rapidly evolving demands of the AI era. This potential shift marks a critical adjustment in Apple’s hardware strategy to mitigate risks associated with supplier dependency and market volatility.
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