iPhone maker Apple (AAPL) has held “exploratory discussions” with Intel (INTC) and Samsung Electronics (SSNLF) to produce the main processors for its devices, Bloomberg reported, citing sources familiar with the matter. On Apple’s Q2 FY26 earnings call, management noted that iPhone sales were impacted by supply constraints for its advanced processor chips used in the device.
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While Apple is exploring options beyond its long-time supplier, Taiwan Semiconductor Manufacturing Company (TSM), or TSMC, it reportedly has concerns about reliability and scale with other chip companies.
Apple Seeks Alternatives to TSMC
Apple reportedly held early-stage talks with Intel to manufacture chips for its devices. Also, the company’s executives have visited Samsung’s plant under development in Texas, which will manufacture advanced chips.
However, sources cautioned that discussions with both suppliers are preliminary and have not yet resulted in any orders. They also noted that Apple is worried about using non-TSMC technology and may not eventually move forward with another supplier.
It is worth noting that for more than a decade, TSMC has manufactured main processors for Apple’s devices in its plant in Taiwan. However, massive demand from AI data centers has led to supply chain disruptions. Moreover, higher-than-anticipated demand for Macs capable of running AI models has made matters worse.
A deal with Apple could boost Intel’s prospects as the company is trying to turn around its business under the leadership of CEO Lip-Bu Tan. Moreover, it would help Apple diversify its supply chain and strengthen its relationship with the Trump administration, which is backing Intel.
Wall Street’s Take on AAPL and Chipmakers
Wall Street has a Strong Buy consensus rating on only TSMC, as the company benefits from massive demand for chips needed to support the ongoing AI boom. Meanwhile, Apple and Samsung stocks score a Moderate Buy consensus rating, and Intel has a Hold rating as analysts continue to closely watch the company’s turnaround.
