Apple is reportedly exploring a return to intel as a secondary chip supplier, a move signaling the growing importance of supply chain diversification in the tech industry. The potential collaboration, first reported by analysts at GF Securities, would see Intel producing processors for future iPhones as early as 2028, though Taiwan Semiconductor Manufacturing Company (TSMC) is expected to remain Apple’s primary manufacturer. This strategy reflects the complexities of modern chip production and the need for redundancy amidst ongoing geopolitical and logistical challenges impacting global semiconductor availability.
Apple is considering Intel as a secondary chip supplier for future iPhones, according to a new analysis.
Apple May Re-Engage Intel for Chip Production
The tech giant may shift silicon production for lower-end iPhone models to Intel as early as 2028. This possibility stems from reports circulating online and was recently highlighted by analyst Jeff Pu of GF Securities.
Apple could potentially utilize Intel’s 14A process in 2028 for certain iPhone processors. However, the analyst believes Taiwan Semiconductor Manufacturing Company (TSMC) will remain Apple’s primary chip manufacturer. The move reflects the increasing complexity of chip manufacturing and the need for diversified supply chains in the tech industry.
According to the analysis, Intel’s role would likely be limited to chip fabrication – essentially acting as a foundry to produce chips entirely designed by Apple. This would allow Apple to maintain complete control over chip architecture, performance goals, and feature integration.
The potential collaboration, starting in 2028, would reportedly focus on processors for non-Pro iPhone models, with Apple continuing to source its top-tier chips elsewhere. This tiered approach allows Apple to balance cost and performance across its product lineup.
Manufacturing iPhone processors is a challenging undertaking, as is the case with any mobile processor. For iPhones, power efficiency – performance per watt – is particularly crucial, as even minor inefficiencies can significantly impact battery life, design constraints, or thermal management.
The size of phone processors also presents unique challenges. Heat dissipation, for example, is more noticeable in the compact form factor of an iPhone compared to a larger device like a Mac.
Given the substantial volumes of iPhones sold, maintaining high manufacturing yields is also paramount. Any issues with production efficiency can quickly escalate into significant supply chain problems.
A secondary foundry like Intel could provide Apple with a more predictable and reliable supply chain, mitigating risks associated with variability and operational challenges. This is likely the impetus behind considering Intel for the production of somewhat lower-end processors at this time.
TSMC has already established a strong track record with Apple, demonstrating expertise in tooling, packaging technologies, and production discipline. This established relationship remains a key factor in Apple’s chip strategy.
