Apple is actively seeking to lessen its dependence on TSMC for chip manufacturing by initiating discussions with Intel and assessing facilities from Samsung Electronics. This shift aims to enhance production capabilities for its core device chips, which have traditionally been produced by TSMC, known for its advanced manufacturing processes.
The company's restructuring efforts have consolidated its hardware engineering teams under Chief Hardware Officer Johny Srouji. This reorganization has divided the hardware division into five critical areas, including a focus on Silicon, led by veteran employee Sri Santhanam. Despite these strategic moves, Apple faces challenges related to manufacturing scale and consistency, as neither Intel nor Samsung has yet proven capable of matching TSMC's production reliability.
The urgency for these talks has increased due to recent supply-chain disruptions attributed to heightened demand for AI-capable devices and the expansion of AI data centers. Apple has acknowledged these limitations in its supply chain during its latest earnings call, prompting a more immediate search for alternative suppliers.
Intel and Samsung stand to gain significantly from a partnership with Apple, which would not only validate Intel's foundry ambitions but also revive a long-standing relationship that began in 2006. As Apple ventures into this diversification, the dynamics of its supply chain are expected to evolve significantly.