TSMC expected to remain Apple’s primary chip manufacturing partner despite reported Intel deal: Report
The world’s largest foundry’s technological leadership and production stability make it indispensable for Apple’s core devices in the near future, the report said on Sunday, citing industry experts.
The comments came after The Wall Street Journal reported on Friday that Apple and Intel had reached a preliminary agreement after more than a year of talks, the report said. The deal reportedly involves Intel producing some chips for Apple devices, signaling a potential diversification of Apple’s supply chain.
Economist Liu Pei-chen of the Taiwan Economic Research Institute told Focus Taiwan that TSMC’s advanced packaging technologies, including InFO and CoWoS, remain critical to the performance of Apple’s A-series and M-series chips. These proprietary processes provide a level of performance that competitors struggle to match, he said.
He said Intel and Samsung Electronics still lag TSMC in areas such as chip yield and power efficiency, making it difficult for Apple to shift its flagship chip orders away from the Taiwanese foundry in the near term.
The economist added that Apple and TSMC have established deep technological ties over the years, creating a high barrier for rivals. He explained that TSMC is expected to remain Apple’s preferred manufacturing partner unless rivals make major breakthroughs in 2-nanometer or all-around gate (GAA) technologies.
Liu emphasized that while Intel is advancing its Intel 18A process and Samsung is seeking opportunities through its 2nm GAA technology, both companies have previously struggled with issues such as unstable yields and excessive power consumption during large-scale production. He also noted that it is difficult to challenge TSMC’s leading position due to its stable delivery track record and extensive research and development capabilities. For Apple, shifting core chip orders too early led to significant supply chain risks that the company was likely trying to avoid.
President Capital Management Co. Its president, Li Fang-kuo, told CNA that Apple’s reported move was not due to problems with TSMC’s technology. He attributed this development to strong demand for advanced processes from AI chip customers such as NVIDIA, tightening TSMC’s production capacity.
This reflects TSMC’s dominant position in advanced chip production, and demand in the industry currently exceeds supply, Li said.
