Jakarta, INTI - So far, Apple has relied on TSMC to produce the A-series and M-series chips used in its devices. To avoid becoming overly dependent on TSMC, Apple is reportedly eyeing other contractors to produce its chips.
According to a Bloomberg report, Apple is in early discussions with Intel. The company has also visited Samsung's facility in Texas, United States, which will produce advanced chips.
This news comes after Apple underwent an internal reorganization that combined the hardware engineering and hardware technology teams into a single organization led by Johny Srouji as Chief Hardware Officer. As part of the reorganization, the hardware team was divided into five main areas, one of which is Silicon, led by Sri Santhanam.
The Bloomberg report stated that the main challenges faced by Apple in its diversification efforts are manufacturing scale and consistency. Intel and Samsung are said to be unable to offer the same type and scale of production as TSMC.
Potential Benefit
For Intel and Samsung, both would benefit significantly if they successfully acquire Apple as a customer. For Intel, this would be much-needed validation for its fledgling foundry business. Previously, Apple and Intel had a partnership in 2006 until Apple switched to using its own Apple Silicon chips in 2020.
Meanwhile, Samsung has long been Apple's partner, supplying displays for the iPhone. However, this partnership could be a significant boost to solidifying Samsung's position in the advanced chip market, as reported by 9to5Mac.
Bloomberg reports that Apple's discussions with Intel and Samsung are still in their early stages. Apple is also said to be concerned about using non-TSMC technology and may seek other partners at all.
Conclusion
Apple is exploring diversification of its chip suppliers by doing initial talks with Intel and Samsung to avoid overreliance on TSMC. However, the main challenges are production capability and consistency, as Intel and Samsung are considered unable to match TSMC's scale. Discussions are still in the early stages, and Apple is still considering the risks of using technology outside of TSMC, so a partnership with other contractors is uncertain.
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