Key Moments
- Apple Inc (NASDAQ:AAPL) has held preliminary talks with Intel Corp (NASDAQ:INTC) and Samsung Electronics (KS:005930) about producing its main processors, according to a Bloomberg News report.
- Intel shares advanced 3.3% in U.S. premarket trading, while Samsung Electronics stock closed at a record KRW232,500, up 5.4% on the session.
- The reported discussions are in early stages and no final decisions have been made on shifting production away from Taiwan Semiconductor Manufacturing Co (NYSE:TSM).
Apple Explores Alternatives to TSMC
Apple Inc (NASDAQ:AAPL) has initiated exploratory discussions with Intel Corp (NASDAQ:INTC) and Samsung Electronics (KS:005930) over the possibility of manufacturing the main processors used in its hardware lineup, Bloomberg News reported on Tuesday, citing people familiar with the matter.
According to the report, the talks signal that Apple is evaluating options to diversify its chip manufacturing beyond its long-standing partner, Taiwan Semiconductor Manufacturing Co (NYSE:TSM).
Early-Stage Talks Focused on Supply Chain Diversification
Bloomberg reported that the conversations remain at an early stage and are part of Apple’s broader effort to lessen dependence on a single producer for its custom chips, which power iPhones, iPads, and Macs.
The report stated that Apple has approached Intel about the potential use of Intel’s foundry services. In addition, Apple executives have visited a new Samsung chip fabrication facility being built in Texas, according to the same report.
Market Reaction and Potential Supply Chain Shift
The news had an immediate impact on related semiconductor names. Intel shares rose 3.3% in premarket U.S. trading following the report. In South Korea, Samsung Electronics closed at a fresh all-time high of KRW232,500, marking a 5.4% gain on the day.
Bloomberg noted that any move by Apple to reallocate production would represent a major shift in its supply chain approach. However, the report emphasized that no definitive decisions have been taken at this stage.
| Company | Exchange / Ticker | Reported Price Move | Additional Detail |
|---|---|---|---|
| Apple Inc | NASDAQ:AAPL | Not specified | Held exploratory talks with Intel and Samsung on processor production |
| Intel Corp | NASDAQ:INTC | +3.3% in U.S. premarket trade | Engaged by Apple regarding potential use of its foundry services |
| Samsung Electronics | KS:005930 | Closed at KRW232,500, up 5.4% | Apple executives visited its new chip facility under development in Texas |
| Taiwan Semiconductor Manufacturing Co | NYSE:TSM | Not specified | Long-time manufacturing partner for Apple’s custom chips |
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