Apple Inc (NASDAQ:AAPL) has held preliminary discussions with Intel Corp (NASDAQ:INTC) and Samsung Electronics (KS:005930) about the possibility of having those companies manufacture processors used in its devices, people familiar with the matter said.
The talks form part of an effort by Apple to reduce its dependence on a single chip supplier - long-time partner Taiwan Semiconductor Manufacturing Co (NYSE:TSM) - for the custom processors that power iPhones, iPads and Macs.
Sources described the conversations as early-stage and exploratory. Apple has engaged Intel about the potential use of its foundry services, while Apple executives have also visited a Samsung chip-manufacturing facility that is under development in Texas, according to those familiar with the discussions.
While such moves would represent a notable alteration to Apple’s manufacturing relationships, no final decisions have been made and the company has not committed to shifting production away from its current arrangements. The exploratory nature of the talks means plans could change or be abandoned.
Context and implications
The discussions signal Apple’s interest in diversifying its supply chain for the custom silicon that underpins its device lineup. Pursuing additional foundry partners would be a departure from relying predominantly on one supplier for those chips, although the sources emphasized that the talks remain at an initial stage.
Conversations with Intel relate specifically to the potential use of Intel’s foundry capabilities. Separately, visits to Samsung’s Texas facility were described as part of Apple’s fact-finding on manufacturing capacity and capabilities.
Current status
- The discussions are exploratory and no commitments have been made.
- Apple is evaluating potential manufacturing options with at least two alternative suppliers.
- Any eventual change would represent a significant shift in Apple’s chip-sourcing strategy, but the outcome remains uncertain.
Observers and market participants will be watching whether Apple proceeds beyond exploratory discussions and whether any formal agreements emerge with Intel, Samsung or other manufacturers. For now, the matter remains an internal strategic consideration being investigated through early-stage engagement.