TSMC has been Apple’s exclusive supplier of systems-on-a-chips since 2014, but that 12-year run may be coming to an end. According to The Wall Street Journal, Apple is considering having some of its lower-end processors made by a company other than TSMC. “Now that TSMC is doing more business with Nvidia and other AI companies, people with knowledge of the chip supply chain said Apple is considering having some of its lower-end processors made by someone other than TSMC,” the report says.
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The report did not mention the candidates, but previous rumors have suggested that Intel could begin supplying some lower-end processors to Apple in 2027 or 2028.
A few months ago, GF Securities analyst Jeff Pu said he expects Intel to reach a chip supply deal with Apple for at least some non-Pro iPhone models starting in 2028. Based on that timeline, Intel could supply Apple with at least a portion of the A21 or A22 chips for future iPhone models if the companies agree to a partnership.
Apple's return to Intel may also include some chips for Macs and iPads. Last year, Tianfeng Securitiesanalyst Ming-Chi Kuosaid he expected Intel to start shipping Apple's lower-end M-series chips for select Mac and iPad models as early as mid-2027. For that, Kuo said Apple plans to use Intel's 18A process.
He didn't mention the iPhone. There's no indication that Intel will play a role in designing the iPhone's chips, with its involvement expected to be strictly limited to manufacturing.
See also: Apple reportedly tested the A15 chip in a MacBook
This will be different from the era of Intel Macs, which used Intel-designed processors with x86 architecture. Apple began switching from Intel processors to Macs in 2020. Intel will help Apple diversify its supply chain, which could come at a critical time as Nvidia has reportedly surpassed Apple as TSMC's largest customer amid increasing competition for NAND memory and RAM for AI servers.
TSMC isn’t the only chip supplier seeing increased demand amid the AI server boom, as Samsung and SK Hynix have gained enough clout to demand that Apple pay more for RAM chips, according to supply chain sources familiar with the matter, according to The Wall Street Journal. On an earnings call last week, Apple CEO Tim Cook said that rising memory chip prices had “minimal impact” on Apple’s gross margin in the previous quarter, but expects “a little more impact” on the company’s gross margin in the current quarter.
He said Apple “will consider a range of options to address this” as necessary. Apple analyst Ming-Chi Kuo does not expect price increases for the iPhone 18 series.
See also: Apple reportedly tested the A15 chip in a MacBook
Apple reported record revenue of $143.8 billion last quarter, up 16% year-over-year, and is forecasting similar growth of 13% to 16% year-over-year and a gross profit margin of 48% to 49% in the current quarter, so the company is still reporting impressive earnings results despite concerns about memory chip prices.
