Apple has opened early talks with Intel and visited a plant run by Samsung Electronics in Texas as it looks at new ways to make the chips that power its devices. Bloomberg reported that no orders have been agreed and discussions are at an early stage.
For more than a decade, Apple has relied on TSMC to build its system on chips for iPhones, iPads and Macs. Those chips sit at the core of each device and require advanced manufacturing processes that only a small group of companies can deliver at scale.
The company has faced supply constraints in recent years as chip production has been directed toward artificial intelligence systems and data centres. Apple chief executive Tim Cook told investors during the company’s earnings call, “we have less flexibility in the supply chain than we normally would.”
What Is Pushing Apple To Rethink Its Supply Chain?
Apple has long avoided depending on a single supplier for critical parts, and its current setup with TSMC leaves limited room to respond when production tightens or device sales rise faster than expected.
There are also geopolitical risks around Taiwan, where most of TSMC’s advanced manufacturing takes place. Apple has already said it wants to reduce the risk of disruption if tensions involving China affect production in the region.
The company has started to spread some production. TSMC is building chips for Apple at a plant in Phoenix, Arizona, and Apple expects 100 million chips to be made in the United States in 2026. That output only covers a fraction of its total needs, as Apple shipped 247.4 million iPhones in 2025.
Can Intel And Samsung Reach TSMC’s Level?
Both Intel and Samsung want Apple’s business, but each faces technical and production constraints. TSMC leads in advanced chip manufacturing and has built its reputation on delivering consistent output at scale.
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Intel is working to rebuild its manufacturing arm under chief executive Lip-Bu Tan and winning Apple as a customer would give a major boost to that effort and revive a relationship that dates back to 2006, before Apple moved to its own silicon designs.
Samsung has its own plans in advanced chips and recently said it had produced a 2nm mobile chip called the Exynos 2600. Even so, both Samsung and Intel have faced issues in moving to smaller and more efficient chip designs, including overheating problems and low production yields.
Bloomberg reported that Apple’s biggest concern is whether these companies can deliver the same level of scale and reliability as TSMC. The report said, “Intel and Samsung can’t reliably offer the type of production and scale that’s turned TSMC into the dominant made-to-order chip manufacturer – and one of Apple’s most critical supply-chain partners.”
What Will We See For Apple’s Chip Plans?
In the short term, TSMC will stay central to Apple’s products. The company is expected to use TSMC’s 2nm process for future iPhone chips, including models planned for the iPhone 18 range.
Any change to Intel or Samsung would take time, and chips produced by alternative partners would likely appear in devices released in 2027 or later. Apple is also cautious about using different manufacturing technology, and Bloomberg reported that “Apple has concerns about using non-TSMC technology and may not ultimately move forward with another partner.”
How Could OpenAI’s Phone Affect This Race?
A post on X from analyst Ming-Chi Kuo adds another angle to the chip race. He wrote, “OpenAI may be accelerating the development of its first AI agent smartphone, targeting mass production as early as 1H27,” and added that “MediaTek is currently more likely to secure the exclusive processor order, with the device expected to adopt a customized version based on the Dimensity 9600, produced by TSMC on the N2P process in 2H26.”
Kuo also wrote, “If development proceeds smoothly, shipments are projected to total approximately 30 million units in 2027 and 2028 combined.”
That level of output would add extra competition for advanced chip manufacturing capacity, with companies such as Apple and OpenAI relying on TSMC for high-end production at the same time.
