TSMC has been Apple’s chipset supplier for more than a decade. It’s safe to say that without TSMC’s advanced manufacturing capabilities, Apple’s iPhones might not be where they are today. However, according to a recent report from the Wall Street Journal , Apple might start looking for an alternative chip manufacturer.

Apple looking for alternative chip manufacturer

Before you get too concerned about Apple’s chips falling behind the competition, don’t. Apple is still expected to continue using TSMC as its chip manufacturer, but the Taiwanese semiconductor company could lose some of Apple’s business. The report claims that Apple is looking elsewhere to see if its lower-end chips could be made by someone other than TSMC.

There are several reasons behind this. For starters, it makes sense for Apple to diversify. While TSMC is still very much in the lead for cutting-edge chip tech, Apple doesn’t necessarily need that for lower-end or older chips. Secondly, costs could be another reason. TSMC has been steadily hiking its prices over the years. Combine that with the memory shortage , it could cut into Apple’s profit margins.

If Apple can find an alternative chip maker, it would at least potentially offset some of those costs . Lastly, it seems that AI might be one of the main driving forces here. Due to the AI boom and the increase in need for semiconductors, TSMC has been working more with NVIDIA and other AI companies.

This means that TSMC could have fewer production lines available to Apple. And we’re sure that Apple doesn’t want to find itself in a position where it cannot get enough chips for its iPhones.

If not TSMC, then who?

Right now, there aren’t that many semiconductor manufacturers in the world that can cater to Apple’s demands. So, if Apple is looking for alternatives, who else could they turn to? According to GF Securities analyst Jeff Pu, Apple could find themselves doing business with Intel again.

The analyst believes that Apple and Intel could strike a deal for some non-Pro models in 2028. This could work out for Apple too, especially with the Trump administration’s tariffs on imported goods. At least Intel has a base of operations in the US, which could solve that issue.

Other potential candidates include Samsung. Samsung is expected to debut their first-ever 2nm chipset soon. If the company can scale up effectively , perhaps they could land some of Apple’s orders as well.