Cupertino reconsiders reliance on TSMC
Pro
Image: Apple
Apple is investigating alternative chip manufacturers, potentially further diversifying its supply chain beyond Taiwan Semiconductor Manufacturing Company (TSMC). The tech giant is holding preliminary talks with Intel and Samsung about chip production for its devices, according to Bloomberg.
Although these talks have not yet resulted in orders, Apple appears to be cautious about moving away from TSMC, which currently produces all of its chips. Sources suggest that the concerns centre on whether other manufacturers can match TSMC’s production capacity and scale. It remains possible that Apple will ultimately choose to continue relying solely on TSMC for its chip needs.
Apple is said to prefer having multiple suppliers for critical components, with the aim of strengthening its bargaining position during price negotiations and limiting potential supply disruptions. Working with Intel could also strengthen its ties with the US government, which last year acquired a 10% stake in the American chipmaker.
In addition, outgoing CEO Tim Cook recently pointed to the expected impact of rising memory prices, particularly after June. The increase in memory costs is being attributed to strong demand from AI companies.
Business AM