Evening Briefing Asia

More Signs of Change at Apple as it Explores Using Intel, Samsung for Processors

Get caught up.
Apple CEO Tim Cook has said that the company faces supply constraints for its device processors.Photographer: David Paul Morris/Bloomberg

Change is in the air at the company that Steve Jobs built. For more than a decade, Apple has designed the main processors that power its devices (known as systems-on-a-chip) and relied on TSMC to build them using the most advanced production processes in Taiwan. So, it’s quite significant that the iPhone and iPad maker has held exploratory discussions about using Intel and Samsung Electronics to produce said processors in the US.

Apple has had early-stage talks with Intel about enlisting the company’s chipmaking services, according to people familiar with the deliberations. Meanwhile, its executives have made visits to a Samsung plant under development in Texas that will also make advanced chips. Neither effort has resulted in any orders so far, and the work with both suppliers remains preliminary. Plus, Apple has concerns about using non-TSMC technology and may not ultimately move forward with another partner, the people added.