For over a decade, Apple has been working with TSMC. Starting in 2014, the iPhone’s central processor was manufactured at TSMC factories. Those processors deliver snappier app performance, smoother gaming, and longer battery life between charges. Year after year, Apple draws up the blueprint while mass production happens under TSMC’s roof.
A shift could be coming. Rumors suggest Apple split production among several manufacturers, at least for certain iPhones.
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Apple Reconsiders Chip Partnership
What matters here isn’t how good the chips are. Still ahead in cutting-edge production? That’s TSMC. Pressure on availability – that’s the real problem. Big names like Nvidia rely on them now, needing massive amounts for artificial intelligence gear.
Fewer gaps appear when demand climbs, squeezing Apple’s timeline. Sooner or later, backups enter the picture – keeping things moving matters more now.
A new piece in The Wall Street Journal reveals that Apple has begun evaluating different manufacturing sites. Not for high-end chip production, mind you – those stay put. Instead, the shift targets simpler iPhones, ones without the Pro label. Performance isn’t the main driver here. What counts more? Lower cost, larger output. Factories that can deliver could soon see renewed interest. Volume takes priority over speed. Standard phones fit that goal better.
Intel Back in Focus
Intel keeps popping up whenever people chat about tech lately. Rumors say they might build processors for Brand starting near the end of 2025. At first, these chips could go into regular iPhones – nothing fancy – and a cheaper MacBook, too. That’s where testing would begin.
Here’s how it works. The chip design stays with Apple, built by their own team. Manufacturing is handed off to Intel, separate from development. Control of features and software adjustments remains fully with Company. Spreading out who does what reduces the chance that any single problem will stop progress. Risk shifts when making things isn’t all done in one place.
When Might This Occur
Imagine flipping your phone open – won’t happen overnight. Predictions point to Intel-made iPhones showing up close to 2028. Whispers name devices such as the iPhone 20 or iPhone 20e among the first. Behind these guesses lies slow progress.
One possibility floated by analyst Jeff Pu involves Brand tapping into Intel’s forthcoming 14A manufacturing method. This step might come alongside a fresh transistor blueprint. Progress at current pace means such advances could drive next-gen processors – think A21 or even A22. Timing hinges on steady, hiccup-free development.
For now, TSMC still handles most of Brand’s top-tier chip production.
A Possible Effect on MacBooks
A fresh move might take things past smartphones. Rumors suggest Brand is working on a cheaper MacBook, likely arriving mid-2026. On that machine, Intel might supply the processor inside.
Should things go that way, Intel will slowly take on a larger role in Brand’s gear. Not taking TSMC’s place – just finally moving off the bench.
Cost Pressure and iPhone Prices
What’s happening with chips isn’t the whole picture. Even so, memory prices, along with those of components tied to artificial intelligence, keep rising. Because of that, Apple is trying hard not to make customers pay more.
Prices for the iPhone 18 series are unlikely to rise, despite rising component costs. Though RAM costs climbed by late 2025, Tim Cook noted they barely touched overall performance. This time around, though, stress on margins might run deeper.
That may be why whispers say the iPhone 18 could shift to 2027. With a longer gap, Company has more space to handle expenses and production.
A Broader Supply Strategy
Still working closely with TSMC, Apple is now bringing others into the mix. Opening the door to more suppliers lets Company move faster when needed. Having choices means better deals and fewer holdups. Unexpected shifts become easier to handle.
A move like this doesn’t just happen by chance when chips steer everything, not about cutting ties so much as keeping options open down the road.
