Apple eyes US chip partnerships with Intel, Samsung

For over a decade, Apple has relied on one company to supply processors for its devices: Taiwan Semiconductor Manufacturing Co. But the iPhone maker recently held preliminary talks with Intel and Samsung to build chips in the U.S. instead, Bloomberg reports, citing anonymous sources. The report sent Intel shares surging to an all-time high Tuesday. Bringing production stateside could helping Apple keep up with booming demand tied to AI's growth, and offer insulation from any Chinese interference in Taiwan, where most of TSMC's chips are made.

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Apple eyes US chip partnerships with Intel, Samsung
Should Apple put Intel inside again? Apple has reportedly held exploratory talks with Intel and Samsung about producing processors for its devices in the United States. Apple executives have even made visits to a Samsung plant under development in Texas. In the foundry market, TSMC is first, Samsung is a distant second, and Intel is third. Apple working with Samsung is not as big of a deal as it might seem. Yes, the two companies compete in many areas, including smartphones and smart watches, but Apple also uses Samsung parts, including OLED displays, memory chips, and other components in many of its devices, most notably in iPhones. Apple working with Intel again is more surprising, given their history. Intel designed and supplied Mac processors from 2006 until about 2020, before Apple famously moved its desktops and laptops to in-house chips based on iPad components. To be clear, the discussions with Intel and Samsung are preliminary and have not resulted in any orders. Apple has concerns about using technology that isn’t from TSMC, a partner that has served it well for 15 years. Apple designs the chips that power its devices and relies on TSMC to build them in Taiwan using the most advanced production processes. Still, if Apple even gives a minor deal to Intel or Samsung, say only for MacBook Neo chips, that would be a strong indication which foundry Apple believes is a worthy TSMC alternative.

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