Apple has relied on TSMC to make every Apple Silicon chip since 2014, but that long run now faces real pressure. As AI companies rush to buy more chips, memory, and factory space, Apple is looking for ways to protect its supply chain and its margins. One option now on the table is simple. Apple wants to move some lower end processors away from TSMC and give that work to another manufacturer.
The Wall Street Journal reported that Apple began this search as TSMC takes on more business from Nvidia and other AI firms. Those companies now compete with Apple for the same advanced factories, which changes the balance of power in the chip world.
“Now that TSMC is doing more business with Nvidia and other AI companies, people with knowledge of the chip supply chain said Apple was exploring whether some lower end processors could be made by someone other than TSMC,” The Wall Street Journal said.
Intel enters the picture
Intel stands out as the main candidate. Analyst Jeff Pu expects Intel to start making chips for some non Pro iPhones in 2028. That lines up with the A21 or A22 generation.
Ming Chi Kuo added more detail and said Intel could also produce the lowest end M series chips for some Macs and iPads as early as mid 2027 using its 18A process. Intel would only handle manufacturing. Apple would still design every chip.
This setup differs from the old Intel Mac era. Back then, Intel also designed the processors. Apple now keeps full control of its architecture.
AI demand squeezes Apple
Nvidia now ranks as TSMC’s largest customer. At the same time, memory prices keep rising as AI data centers buy huge volumes of NAND and DRAM.
“The rate of increase in the price of memory is unprecedented,” said Mike Howard of TechInsights.
Apple CEO Tim Cook confirmed the pressure on the last earnings call.
“Memory prices are increasing significantly,” Cook said. He also said the company will “look at a range of options” to deal with it.
Even so, Apple does not plan to raise iPhone 18 prices. With record revenue and strong margins, the company still has room to move. Shifting some chip production away from TSMC gives Apple more leverage in a market now shaped by AI.
