Apple (AAPL) Stock: Why Apple Is Talking to Intel and Samsung About Making Its Chips

TLDR

• Apple has held early-stage talks with Intel and Samsung to manufacture its main device chips in the US
• Neither deal has resulted in orders yet; both conversations remain preliminary
• Apple’s CEO Tim Cook flagged chip supply constraints on last week’s Q2 earnings call
• A deal with Intel could strengthen Apple’s ties with the Trump administration, which backs the chipmaker
• Apple currently gets chips from TSMC in Taiwan, with plans for 100 million chips from TSMC’s Arizona plant in 2026

Apple is exploring whether Intel and Samsung could manufacture the main processors for its devices inside the United States, Bloomberg reported Tuesday. The talks are early-stage and no orders have been placed.

Apple stock was little changed in premarket trading on Tuesday. Intel rose as much as 4% on the news, while Samsung’s Korean-listed stock gained over 5% before markets there closed.

Apple Inc., AAPL

Apple has relied on TSMC to build its chips for more than a decade. TSMC’s Taiwan facilities produce the advanced 3-nanometer chips that power the latest iPhones and Macs.

The problem? Supply is tight. Demand from AI data centers has eaten into chip availability, and demand for AI-capable Macs came in higher than expected.

Apple has visited a Samsung facility under development in Texas that will produce advanced chips. On the Intel side, early-stage conversations about using its foundry services have taken place.

Why Intel and Samsung?

For Intel, landing Apple as a foundry customer would be a major win. CEO Lip-Bu Tan is trying to rebuild Intel’s chip manufacturing business after years of setbacks. Apple’s business could help attract other clients.

Samsung is already a distant second to TSMC in the foundry market, but a stamp of approval from Apple would carry weight. Samsung also already makes peripheral iPhone components, including power management parts.

There’s a political angle too. The Trump administration has backed Intel as a domestic chipmaking champion, and some Apple executives believe a partnership could improve the company’s relationship with the White House.

That said, Apple has real concerns. Intel and Samsung can’t yet match TSMC’s production reliability or scale. Apple may ultimately stick with TSMC and not move forward with either alternative.

Apple’s Supply Chain Strategy

Apple prefers to have at least two suppliers for major components, giving it pricing leverage and resilience against disruptions.

Taiwan carries specific risk. Cook has long flagged the concentration of chip production there as a strategic vulnerability, given China’s territorial claims over the island.

TSMC is already expanding in Phoenix, Arizona. Apple said it will receive 100 million chips from that facility in 2026 — but that would cover only a fraction of its total annual device shipments.

The iPhone 17 Pro line has also been hit by supply chain issues. Apple has operations staff working to stop constraints from spreading to AirPods and Apple Watch lines.

Wall Street rates TSMC a Strong Buy, Apple and Samsung a Moderate Buy, and Intel a Hold as analysts monitor its turnaround.

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