Apple may be ending its 12-year chip production strategy

Since 2014, TSMC has been the exclusive chip supplier for Apple’s devices, but this 12-year monopoly might soon come to an end.

According to The Wall Street Journal, Apple is exploring the possibility of having some of its entry-level processors manufactured by a company other than TSMC. This shift in thinking has been sparked by TSMC’s deepening partnerships with Nvidia and other AI-focused product makers.

Sources familiar with Apple’s supply chain reveal that the company is considering alternative manufacturers for certain entry-level chips. While the report doesn’t name any specific contenders, there have been persistent rumors that Intel could start supplying processors for lower-tier iPhone models as soon as 2027 or 2028.

A few months ago, GF Securities analyst Jeff Pu predicted an Intel-Apple deal to produce chips for some budget iPhone models starting in 2028. Pu expects Intel could supply at least part of the A21 or A22 chip line for future iPhones if the two companies reach a partnership agreement.

The renewed collaboration with Intel might also affect chips for certain Mac and iPad models. Last year, Tianfeng Securities analyst Ming-Chi Kuo forecasted that Intel would begin shipping M-series chips for select Macs and iPads by mid-2027, leveraging Intel’s 18A process technology. Notably, Kuo did not mention iPhones in that prediction.