Rumor mill: For more than a decade, every iPhone and Mac processor has come from a single manufacturer: TSMC. That unbroken run, however, may be facing its first serious test. As the AI boom redirects much of TSMC's manufacturing capacity toward companies like Nvidia, Apple is reportedly evaluating alternative suppliers for some of its less performance-intensive chips.
Sources have told The Wall Street Journal that Apple has begun exploring the idea of sourcing certain processors from other foundries. The discussions appear to focus on the lower end of its product lineup – chips where absolute performance and power efficiency are less dependent on bleeding-edge fabrication technology. No alternative partners were named in the report, but industry analysts have repeatedly pointed to Intel as a likely candidate.
Intel's reentry into Apple's supply chain – after being phased out of Mac systems in 2020 – would mark a significant turning point for both companies. GF Securities analyst Jeff Pu has predicted that Intel could begin fabricating chips for non-Pro iPhone models by 2028, potentially starting with the A21 or A22 series.
Tianfeng Securities analyst Ming-Chi Kuo went further, forecasting that Intel may produce Apple's lowest-end M-series processors for certain Macs and iPads as early as mid-2027. That arrangement would rely on Intel's forthcoming 18A process node, which is designed to compete directly with TSMC's 2-nanometer-class technologies.
Even so, the relationship would differ fundamentally from Apple's previous reliance on Intel. Rather than using Intel-designed x86 CPUs, Apple would continue to develop its own Arm-based chips, with Intel acting solely as a manufacturing partner.
Meanwhile, demand for advanced AI accelerators has reshaped TSMC's priorities. Nvidia has reportedly become TSMC's largest customer, displacing Apple. The surge in orders from AI chipmakers, combined with rising prices across memory and NAND supply chains, has tightened semiconductor capacity across the board. Samsung and SK Hynix have also leveraged the situation to secure higher prices for DRAM and NAND – both critical components in Apple's devices and in AI data centers.
Apple CEO Tim Cook acknowledged last week that higher memory costs have had a "minimal" impact on profit margins so far, though he expects somewhat greater pressure in the current quarter. Cook said Apple is "looking at a range of options" to manage those costs.
It remains to be seen whether Intel's fabrication comeback will power Apple's next generation of silicon. But the discussion itself underscores a broader shift in the semiconductor ecosystem – one in which even Apple, long synonymous with TSMC's cutting-edge manufacturing, must navigate a world increasingly dominated by AI demand and constrained by finite capacity.