Apple Inc. (Apple (AAPL)) is looking to shake up its chip supply chain. The company has held early-stage talks with Intel Corp. (Intel (INTC)) and checked out Samsung Electronics Co., Ltd.'s (Samsung (SSNLF)) upcoming Texas facility as potential partners to manufacture its main processors. The goal? Reduce its near-total reliance on Taiwan Semiconductor Manufacturing Co. Ltd. (Taiwan Semiconductor (TSM)), which has been the go-to for Apple's most advanced chips.
The discussions are still preliminary—no orders have been placed. But they signal a real shift in strategy, according to a Bloomberg report on Tuesday. Apple has historically leaned heavily on Taiwan Semi for its cutting-edge chips, and concerns about switching to a different technology might keep it tied to its current partner. Still, the company is clearly exploring options.
Supply Constraints Push Strategic Shift
Apple's leadership has been feeling the heat on chip supply, especially for the advanced nodes powering iPhones and Macs. CEO Tim Cook, during the company's quarterly earnings call last week, said Apple currently has "less flexibility in the supply chain than we normally would," pointing to strong AI-driven demand and capacity limitations as the culprits.
Apple has already worked with Taiwan Semiconductor to expand U.S. production in Arizona. But that output will cover only a small slice of its total needs, making the case for additional suppliers even stronger.
Analysts See Intel Role Emerging Over Time
Analysts expect Intel to gradually become a bigger part of Apple's supply chain. Jeff Pu of GF Securities has projected that Intel could start producing Apple chips using its 14A process by 2028, potentially supplying components for non-Pro iPhone models while Taiwan Semi remains the primary partner.
Ming-Chi Kuo of Tianfeng Securities has suggested Intel might manufacture lower-end M-series chips for select Macs and iPads as early as mid-2027 using its 18A process. The broader shift underscores Apple's effort to reduce single-supplier dependency while keeping its core relationship with Taiwan Semi intact.
Analyst Consensus & Recent Actions
Apple stock carries a Buy rating with an average price target of $309.78. Recent analyst moves include:
- UBS: Neutral (Raises Target to $296.00) (May 1)
- TD Cowen: Buy (Raises Target to $335.00) (May 1)
- Wedbush: Outperform (Maintains Target to $350.00) (May 1)
Apple Top ETF Exposure
- Fidelity Nasdaq Composite Index ETF (ONEQ): 9.72% Weight
- Direxion Daily Technology Bull 3X ETF (TECL): 9.91% Weight
- Xtrackers S&P 500 Scored & Screened ETF (SNPE): 9.67% Weight
Because Apple carries such a heavy weight in these funds, any significant inflows or outflows will likely trigger automatic buying or selling of the stock.
Apple Price Action
Apple shares were down 0.19% at $276.30 during premarket trading on Tuesday.
