Bloomberg reports Apple is exploring Intel and Samsung as alternatives to its reliance on TSMC
A Bloomberg report published Tuesday set off a notable rally in the semiconductor sector, with Intel shares climbing 3.4% in premarket trading after it emerged that Apple has opened discussions with two competing chipmakers about manufacturing processors for its products. The development comes as Apple quietly works to reduce its near-total dependence on Taiwan Semiconductor Manufacturing, the company that currently produces virtually every processor powering iPhones, iPads, and Mac computers.
Why Apple is looking beyond TSMC
Apple’s relationship with TSMC has defined the iPhone maker’s supply chain for years, but that concentration has become a strategic concern. Taiwan’s political situation and its proximity to China have made relying on a single manufacturing location a vulnerability that Apple’s leadership is no longer comfortable leaving unaddressed. The effort to identify alternative manufacturers reflects a wider trend across the technology industry, where major companies are actively working to spread chip production across multiple facilities and geographies to reduce exposure to any single point of failure in their supply chains.
1. Intel enters the picture
Intel shares climbed 3.4% to $99.06 in premarket trading Tuesday after Bloomberg reported that Apple had engaged in preliminary conversations with the company about fabricating processors for its product lineup. Neither Intel nor Apple provided a statement when contacted for comment. Intel has spent years and substantial capital building out its foundry division, positioning itself as a domestic U.S. alternative to TSMC and working to attract major outside customers to its manufacturing operations. That effort has moved gradually. The company’s most prominent third-party partnership to date involves Terafab, an initiative connected to Elon Musk designed to support manufacturing needs for Tesla and other ventures in his portfolio. Securing Apple would represent a different level of achievement, given that Apple’s M-series and A-series processors, designed in-house for its Mac and iPhone product lines, rank among the most sought-after chip fabrication contracts in the world.
2. Samsung joins the competition
Apple’s manufacturing conversations are not limited to Intel. Bloomberg’s report also identified Samsung as a party in these early discussions. Apple’s leadership recently toured Samsung’s semiconductor production facility currently under construction in Taylor, Texas, a sign that the company is actively evaluating what Samsung’s growing domestic manufacturing capacity could offer. The market responded decisively. Samsung shares surged 5.4% to close at a record KRW232,500 in Seoul trading on Tuesday. Like Intel, Samsung offers Apple a manufacturing option outside of Taiwan, and with its Texas facility taking shape, it represents a credible alternative that did not exist until recently.
TSMC holds its ground for now
TSMC shares rose a modest 0.99% on Tuesday, a measured reaction that reflects the market’s understanding that any significant shift away from the Taiwanese manufacturer would be a gradual process rather than a rapid transition. TSMC has spent decades building a commanding lead in advanced chip fabrication, and its technical capabilities remain ahead of both Intel and Samsung in key areas. Even if Apple were to redirect a portion of its production, the change would unfold over years, not months.
Where things stand
For now, the situation remains in the early stages with no commitments made. Apple, Intel, and Samsung all declined to confirm any details, and Bloomberg’s sources were clear that these conversations have not yet produced concrete agreements. What investors are responding to is the possibility of what a deal could mean: for Intel, a flagship customer that would validate its foundry ambitions; for Samsung, a high-profile anchor for its new Texas facility; and for Apple, a supply chain that is meaningfully less exposed to the risks of concentrating production in a single overseas location.
Source: Trader Edge / Bloomberg