"Apple Inc. launches chip production project with Intel" ... can Samsung Electronics seize the opportunity too?

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[Financial News]  Apple Inc. is reportedly launching a project to produce iPhone, iPad and Mac chips using Intel's advanced process technology. As demand for artificial intelligence (AI) semiconductors surges and TSMC's advanced-node capacity shifts toward AI and high-performance computing (HPC), analysts say Apple is moving to diversify its supply chain over the long term. With reports that Apple is also discussing foundry cooperation with Samsung Electronics, competition in the global advanced-node market is expected to intensify.
\r\nOn the 16th, industry sources said Ming-Chi Kuo, an analyst at TF International Securities, stated in a recent report that "Apple Inc. has started producing low-end and legacy iPhone, iPad and Mac processors using Intel 18A-P." Intel 18A-P is part of Intel's next-generation advanced process lineup and uses Foveros packaging technology.
\r\nAccording to Kuo, about 80% of Apple's orders are for iPhones, a share similar to the actual sales mix of Apple products. He said, "Apple Inc. is not simply testing production. It is verifying whether Intel can become a supplier for its entire product lineup."
\r\nKuo expects Apple's production plan through Intel to begin with small-scale tests this year, expand into full-scale mass production next year, continue growing in 2028, and then decline in 2029. However, the actual production schedule and shipment volume at Intel remain uncertain. Assembly partners and electronics manufacturing services (EMS) companies have reportedly not yet received specific shipment schedules.
\r\nKuo said, "Intel aims to stabilize yields at above 50% to 60% by next year," and added, "Even if initial shipments go smoothly, TSMC will still maintain more than 90% of supply share."
\r\nApple Inc. is also said to be discussing foundry cooperation with Samsung Electronics. Recent foreign media reports said Apple is in talks with Samsung Electronics' foundry business unit over chip production cooperation. Apple is also reported to have recently visited Samsung Electronics' Samsung Semiconductor Taylor Plant in Texas.
\r\nApple Inc. has so far produced most of its in-house designed chips at TSMC. But as global demand for AI semiconductors surges, TSMC's advanced-node capacity is nearing its limit. Analysts say this has increased Apple's need to secure a more stable chip supply.
\r\nKuo pointed to the reshuffling of advanced-node resources in the AI era as the key backdrop to this move. Demand for AI accelerators and HPC chips is soaring, and TSMC's advanced-node capacity is being reallocated toward AI customers such as NVIDIA Corporation, AMD and Broadcom Inc.
\r\nHe explained, "Apple Inc. believes TSMC resources will continue to tilt toward AI in the future," and added, "This is a strategy to nurture new suppliers while it still has bargaining power."
\r\nThe partnership is also expected to mark an important turning point for Intel. Apple's orders cover the entire product lineup, including iPhone, iPad and Mac, and are both large in scale and difficult to manufacture. Industry watchers see this as Intel Foundry Services' first major opportunity to prove its advanced-node competitiveness.
\r\nIndustry observers say Apple's move to diversify its supply chain could also benefit Samsung Electronics' foundry business. Samsung Electronics is expanding advanced-node capacity around its Samsung Semiconductor Taylor Plant in Texas and has made securing global big tech customers a top priority. Analysts say that even a partial win of Apple's orders could serve as a chance to prove its advanced-node yield and reliability in the market.
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solidkjy@fnnews.com Gu Ja-yoon Reporter