Apple considers Intel Samsung for US chip production

New York, May 5, 2026 Apple Inc. has held preliminary discussions with Intel Corp. and Samsung Electronics Co. about potentially producing its main device processors in the US, sending Intel shares soaring to a record high. ## Supply Chain Diversification Efforts The tech giant has explored using Intel's chipmaking services and visited Samsung's advanced semiconductor plant under construction in Texas, though no orders have been placed yet. Apple currently relies entirely on Taiwan Semiconductor Manufacturing Co. (TSMC) to fabricate its custom-designed processors using cutting-edge 3-nanometer technology for iPhones and Macs. "We have less flexibility in the supply chain than we normally would," Apple CEO Tim Cook recently acknowledged, citing constraints from AI data center expansion and stronger-than-expected demand for AI-capable Macs. The company has long preferred maintaining at least two suppliers for critical components but faces challenges finding alternatives to TSMC's industry-leading scale. As far back as 2022, Cook told employees in an internal meeting that "regardless of what you may feel and think, 60% coming out of anywhere is probably not a strategic position," highlighting concerns about geographic concentration. Apple has since collaborated with TSMC to establish limited US production in Phoenix, Arizona, which is expected to deliver 100 million chips annually starting in 2026. ## Market and Political Implications Intel shares surged as much as 12% on Tuesday, reaching $105.42 by mid-morning in New York — extending a 180% year-to-date rally that has added over $340 billion to its market value. Apple's stock rose 0.8% on the news. Securing Apple as a client would mark a major victory for Intel CEO Lip-Bu Tan as the company seeks to regain footing in advanced chip manufacturing. A partnership could also strengthen Apple's ties with US political leadership. The White House, which brokered a strategic investment in Intel last year, views the company as a national semiconductor champion. Meanwhile, Samsung — already supplying some iPhone power management chips — stands to gain credibility from supplying Apple despite being competitors in smartphones. Both potential suppliers face significant hurdles. Neither Intel nor Samsung can currently match TSMC's production reliability or volume capacity. Apple also harbors technical reservations about adopting non-TSMC fabrication processes. The discussions remain exploratory, with no guarantee of deals materializing. ## Historical Context and Technical Challenges Apple's relationships with both companies span decades. Intel powered Mac processors from 2006 until Apple's 2020 transition to in-house designs, while Samsung manufactured early iPhone chips before being replaced by TSMC. The current talks predate recent supply shortages but have gained urgency amid geopolitical tensions surrounding Taiwan, which China claims as its territory. The latest iPhone 17 Pro and Mac processors use TSMC's 3nm node technology — a standard neither Intel nor Samsung can yet replicate at scale. Samsung ranks as a distant second in the foundry market, while Intel struggles to attract major clients beyond government-backed projects. Apple's stringent performance requirements and massive order volumes make supplier transitions exceptionally complex. While diversification remains a priority, Apple's supply chain team recognizes the difficulties. "Finding backup suppliers is no easy feat," one insider noted. With TSMC still delivering the majority of advanced chips from Taiwan, any shift would require years of coordinated development — leaving Apple's supply strategy at a crossroads between innovation, risk mitigation, and political considerations.

Intel Shares Surge as Apple Explores US Chip Partnerships With Intel, Samsung

Supply Chain Diversification Efforts

Market and Political Implications

Historical Context and Technical Challenges